Anatoly Aksakov, Chairman of the Russian State Duma Financial Markets Committee, has predicted that international trade will migrate to CBDC for settlements during the next five years. Aksakov stressed that not many countries have made progress using these digital currencies, but he believes this will be addressed soon. Russian State Duma Official Bets on National […]
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SEC Issues Investor Alert Highlighting 5 Common Crypto Scams
The SEC’s Office of Investor Education and Advocacy has issued an alert, highlighting five common crypto scams investors should watch out for to avoid losing money. The SEC warns that fraudsters exploit cryptocurrency popularity with sophisticated techniques, making fund recovery difficult. For example, “Fraudsters may conduct pump-and-dump schemes with crypto assets, including so-called ‘memecoins’ that […]
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Recent Analysis Shows Common Transaction Patterns Among Several Bitcoin Mining Pools
A comprehensive X thread by Bitcoin developer and observer 0xB10C has uncovered that several prominent bitcoin mining pools are using identical block templates and transaction prioritization methods, mirroring those of Antpool. This revelation follows earlier findings that highlighted a notable concentration of custodianship among the same pools. Analysis Reveals Shared Mining Practices Among Top Bitcoin […]
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Common Wealth Announces the Launch of the World’s First Free VC Fund
PRESS RELEASE. 8 February 2024 [Lisbon, Portugal]: Common Wealth, the powerful, all-in-one platform for early-stage Web3 investments, today announces the launch of a world-first initiative: a Free “earn-to-own” VC Fund. This launch represents a completely novel fusion of community-driven Web3 principles with the sophistication of venture capital investment. The initiative will see Common Wealth’s first […]
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BRICS Meeting: Iran Pushes for Common Currency — China, Russia Prioritize Settlements in Local Currencies
The first BRICS sherpa meeting with 10 member states has kicked off in Russia with representatives from Brazil, Russia, India, China, South Africa, Saudi Arabia, the United Arab Emirates, Iran, Egypt, and Ethiopia. China, Russia, and Iran are all advocating for the use of national currencies in trade settlements. Iran’s sherpa also expressed hope that a common BRICS currency will soon be operational.
BRICS Meeting With 10 Member States
The first BRICS sherpa meeting for 2024 under the chairmanship of Russia commenced on Tuesday in Moscow, with participation from 10 member states for the first time. In addition to, Brazil, Russia, India, China, and South Africa, the economic bloc is joined by five new nations: Saudi Arabia, the United Arab Emirates, Iran, Egypt, and Ethiopia.
Iran’s sherpa and deputy foreign minister for economic diplomacy, Mehdi Safari, said at the meeting:
In the plans of 2024, I hope that these economic and financial pillars, especially banking and financial issues, payment systems, digital currency, common currency, exchanges with national currencies, etc., will speed up and become operational.
He also stressed the importance of strengthening the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), noting: “I emphasize once again that we in Iran have plans, and will implement the necessary plans, for active and innovative participation in this year’s program.”
Last year, there were reports that the BRICS economic bloc was planning to create a common currency. However, at the group’s leaders summit in August last year in Johannesburg, South Africa, the BRICS nations pushed for the use of national currencies to reduce reliance on the U.S. dollar, instead of discussing a common currency.
Russia’s Deputy Foreign Minister Sergey Ryabkov said at the BRICS sherpa meeting on Tuesday: “In line with the decision of the BRICS leaders in Johannesburg, we will explore ways to make greater use of national and local currencies and payment instruments in our cross-border transactions in order to reduce the negative side effects of the current global economic system.”
China’s BRICS sherpa and vice minister of foreign affairs, Ma Zhaoxu, similarly stated:
We should implement the leaders’ instructions, promote financial corporation as a strategic priority, expand settlements in local currencies, and strengthen linkage between payment systems.
Moreover, he revealed: “China is considering [the] possibility of launching a BRICS AI development and cooperation center in China.”
Do you think the BRICS nations will create a common currency this year? Let us know in the comments section below.
Expert Claims Wall Street Wants To Take Bitcoin Out Of Reach Of The Common Man
A crypto trader has presented a compelling argument concerning the future accessibility of Bitcoin, alleging that Wall Street is aiming to drive the price of BTC beyond the reach of the common investor.
BTC Accessibility Concerns
Crypto trading expert, Oliver L. Velez has recently taken to X (formerly Twitter) to release a post, claiming that Wall Street may be organizing a deliberate strategy to cut off Bitcoin’s accessibility to regular investors.
The crypto trader’s comments present an alarming scenario for Bitcoin investors‘ future. According to Velez, Wall Street, which has been showing increased interest in the crypto space lately, may be planning to extend its motives beyond conventional investment practices. This alleged maneuver could be aiming to create a barrier for everyday investors, potentially limiting their participation and freedom in the crypto market.
Using the overpriced Berkshire Hathaway (BRK.A) shares as a comparison, Velez pointed out that Bitcoin could experience a similar price surge, pushing it to levels where it becomes potentially unaffordable for the general public.
“Berkshire Hathaway (BRK.A) is trading at 4,300 a share. Its price is out of the reach of 99% of all human beings on Earth. You see, Warren Buffett never wanted his baby accessible to you, the masses,” Velez stated. “It was only for the elite, only for the privileged, only for those closest to the money printer. Making this too accessible to the masses might provide too much economic freedom to the wrong group of people.”
Velez alleges that Wall Street is using the same tactics it did with the Berkshire stock for BTC, especially as Spot Bitcoin ETFs are on the way. They are apparently going to drive the price of Bitcoin so high that the average investor would not be able to buy it.
The analyst also alludes to freedom as one of the major selling points of BTC to these Wall Street investors. So contrary to the belief that the Bitcoin price would crash, Velez expects that Wall Street will continue to drive the price of the cryptocurrency higher as a way to keep out the “riff-raff”.
Spot Bitcoin ETF To Drive Scarcity
According to Oliver L. Velez, one of the major catalysts that could trigger Bitcoin’s inaccessibility is the launch of Spot Bitcoin ETFs. Velez asserts that the introduction of Spot Bitcoin ETFs could potentially propel the price of BTC to unprecedented heights, significantly impacting the cryptocurrency’s affordability and availability in the market.
The crypto trader’s insights suggest that ETFs may absorb a considerable portion of the circulating BTC, thereby restricting direct ownership of BTC to normal investors. Given this, the crypto expert believes that the time when smaller investors would be able to easily get in on BTC is shrinking.
“The window of opportunity to buy Bitcoin is closing, and exchanges will see a reduction in available Bitcoin as ETFs scoop it up. Owning Bitcoin directly will become increasingly difficult in the future, making it essential to secure Bitcoin now,” Velez warned.
US State Regulator Shares Most Common Crypto Complaints
The California Department of Financial Protection and Innovation has outlined the most frequently reported complaints related to cryptocurrency. Emphasizing “a rising trend in crypto-related complaints,” the regulator advised: “Be careful what you post and make public online. Scammers can use details shared on social media and dating sites to better understand and target you.”
Top Crypto Complaints
The California Department of Financial Protection and Innovation (DFPI) has revealed some of “the most common crypto-related complaints” received by its Consumer Services Office (CSO). The regulator stated:
A third-quarter 2023 CSO report indicated a rising trend in crypto-related complaints.
A common scenario involves consumers being tricked into transferring their crypto assets from legitimate crypto exchanges to fraudulent platforms or wallets. According to the complaints, consumers believe the legitimate platforms should have done more to prevent fraudulent activity from occurring. Another prevalent issue arises when consumers mistakenly transfer their cryptocurrencies to unidentified wallets, losing access to their funds.
Consumers also raise concerns about being persuaded to send U.S. dollars to scammers’ platforms, wallets, or banks for supposed crypto investments, only to discover they have been defrauded. “When the consumer identifies being scammed, she files a complaint against their bank stating the bank should have done more to prevent fraudulent activity,” the California regulator noted. Additionally, the DFPI receives complaints from consumers who have invested in seemingly profitable cryptocurrency investment opportunities, but upon attempting to withdraw their funds, they find themselves unable to do so and the scammers vanish.
Some complaints stem from genuine concerns regarding transactions or account activities on legitimate exchange sites. The regulator stressed:
This is not a scam, but consumers have the right to submit a complaint against a legitimate crypto platform.
Occasionally, consumers file complaints against DFPI-licensed Investment Advisors regarding crypto asset-related investment advice. The DFPI stressed: “Again, this may not be a scam, but consumers have the right to submit a complaint against a DFPI-licensed investment advisor.”
Moreover, consumers may be approached by scammers through text messages or emails. They pretend to know the victims and convince them to transfer their cryptocurrencies to scam sites. Consumers may also be approached by scammers on social media, particularly through “sweetheart scams” where the scammers feign romantic interest to manipulate the victims into sending them cryptocurrency.
The DFPI warned: “Be careful what you post and make public online. Scammers can use details shared on social media and dating sites to better understand and target you.” The regulator concluded:
Be especially cautious about online crypto-related investment offers. If it seems too good to be true, it probably is. Go slowly, ask questions, and do your own research.
Have you ever come across these crypto issues yourself? Let us know in the comments section below.
Financial Giant Fidelity Addresses 9 Common Bitcoin Criticisms and Misconceptions
Financial services giant Fidelity has addressed nine common Bitcoin criticisms and misconceptions, emphasizing that some of them are “either unfounded or unlikely to be a serious concern.” They include volatility, suitability as a payment method, environmental impact, competition, lack of backing, potential code bugs, regulatory hurdles, waning public interest, and unknown unknowns.
Fidelity Responds to 9 Bitcoin Criticisms
Fidelity Digital Assets, a subsidiary of financial services giant Fidelity Investments, published a research study last week titled “Revisiting Persistent Bitcoin Criticisms.”
In its 13-page document, Fidelity addressed nine Bitcoin criticisms and misconceptions, including updates on five that it previously addressed in November 2020. The firm revealed that the criticisms were sourced from its “regular conversations with institutional investors and observation of public commentary on Bitcoin,” adding that the responses outlined in the study “may be adapted to address other common misconceptions.”
Noting that some common Bitcoin criticisms and misconceptions addressed in its new study are legitimate while some have been debunked, the financial services giant stated:
More than three years later, bitcoin not only remains the largest digital asset by market capitalization, but continues to grow as a monetary network.
The first criticism of Bitcoin is that it is “too volatile to be a store of value.” Fidelity explained: “Bitcoin’s volatility is a trade-off for perfect supply inelasticity and an intervention-free market. However, with greater adoption of bitcoin and bitcoin-related derivatives and investment products, bitcoin’s volatility will continue to decrease, as history has shown.”
The second criticism is that “bitcoin has failed as a means of payment.” Fidelity pointed out: “Contrary to what some people think, data from Coin Metrics shows significant transaction volume on the Bitcoin network with more than .1 trillion in transactions settled, which was just under 40% of what Mastercard processed in the last year. This presents a lower bound for bitcoin’s use as a means of payment.”
The third criticism states that “Bitcoin is wasteful and/or bad for the environment.” Fidelity responded: “Most bitcoin mining is powered by renewable energy or energy that would otherwise be wasted. Additionally, the energy the Bitcoin network does consume is arguably a valid and important use of resources.”
The fourth criticism is that “Bitcoin will be replaced by a competitor.” Fidelity emphasized, “Bitcoin makes trade-offs for core properties that the market deems valuable,” elaborating:
While Bitcoin’s software is open source and may be forked and ‘improved’ upon, its community of stakeholders (users, miners, validators, developers, service providers) and network effects cannot be so easily replicated.
The fifth criticism states that “Bitcoin is not backed by anything.” However, Fidelity argued: “Bitcoin is not backed by cash flows, industrial utility, or decree. Bitcoin is backed by code brought to life by its stakeholders’ social contract.”
The next four criticisms and misconceptions were not addressed by the firm in 2020. Fidelity cautioned: “We believe that there are a few legitimate concerns that have some, even if small, probability of occurring and, therefore, investors should be aware.”
The next criticism outlined in Fidelity Digital Assets’ study is that “Bitcoin’s code could render it worthless.” Fidelity stressed: “While it cannot be ruled out that another bug or unintended consequence of an upgrade may happen, we do think the probability of such an event is much lower as the network has become more resilient, and more developers continue to work on it over time.”
The seventh criticism suggests that “Regulations will slow bitcoin adoption.” While acknowledging that unclear regulations could hinder BTC adoption, Fidelity stated:
Recently, digital asset regulation discussion has increased with policymakers, and we are encouraged to see that digital asset regulation is of increased focus and importance for government representatives.
The eighth criticism about Bitcoin is that “People could lose interest.” However, Fidelity noted: “On-chain data shows little evidence of interest in bitcoin waning. As prices have greatly risen since Bitcoin’s inception, the number of wallets continuing to accumulate and hold a balance has also increased.”
The ninth criticism raises concerns about Bitcoin’s “unknown unknowns.” Besides the “known unknowns,” such as “a bug in Bitcoin’s code, or Bitcoin’s anonymous creator(s) Satoshi suddenly reappearing and selling all their bitcoin,” the financial services giant warned about “unknown unknowns, or possible risks that we do not even know of or have not even imagined yet.” The firm advised: “Investors of any asset should be aware of these and humbly accept that not all risks can be known, let alone quantified and, therefore, should position their investment and portfolio accordingly.”
Fidelity concluded: “Bitcoin is a unique digital asset for an increasingly digital world that requires digging deeper than the surface level to understand its core properties and trade-offs.” You can read the firm’s full responses to the nine Bitcoin criticisms and misconceptions here.
What do you think about Fidelity’s responses to the nine criticisms about Bitcoin? Let us know in the comments section below.
South African Official: Common Currency Requires Central Bank, Threatens Monetary Policy Independence
South Africa’s minister of finance has explained why he believes that no country is ready for a common currency, including a unified BRICS currency. “Setting up a common currency presupposes setting up a central bank, and that presupposes losing independence on monetary policies, and I don’t think any country is ready for that,” he emphasized.
‘I Don’t Think Any Country Is Ready for That’
South Africa’s Minister of Finance Enoch Godongwana talked about the prospect of creating a common currency in an interview on the sidelines of the BRICS economic bloc’s annual summit in Johannesburg on Thursday. South Africa was the host of this year’s BRICS summit.
Despite widespread expectations of the BRICS countries announcing the creation of a common currency, potentially backed by gold, he stressed that “No one has tabled the issue of a BRICS currency, not even in informal meetings.” The official continued:
Setting up a common currency presupposes setting up a central bank, and that presupposes losing independence on monetary policies, and I don’t think any country is ready for that.
The BRICS nations (Brazil, Russia, India, China, and South Africa) announced at the conclusion of the summit that six countries have been invited to join as new members, with their inclusion set to commence on Jan. 1, 2024. The six nations are Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE).
One of the key topics extensively deliberated on at the BRICS summit was the use of local currencies in international trade and financial transactions, rather than relying on the U.S. dollar.
Godongwana stated that when South Africa trades with Botswana, for example, “we know the rate of exchange between the two currencies,” emphasizing that “There is no reason why we can’t pay them in pula and they pay us in rands.”
In their declaration, released at the conclusion of the summit, the BRICS leaders pushed for the use of local currencies. “We stress the importance of encouraging the use of local currencies in international trade and financial transactions between BRICS as well as their trading partners,” their declaration states.
What do you think about the statements by South Africa’s Minister of Finance Enoch Godongwana about the creation of a common currency? Let us know in the comments section below.
Ministry of Economic Development of Russia Pessimistic About Quickly Advancing BRICS Common Currency Proposal
The Ministry of Economic Development of Russia does not expect the rapid development of a common currency for the BRICS bloc. Deputy Economic Development Minister Vladimir Ilyichev stated that “quick breakthroughs” on this issue are unlikely to happen during the ongoing BRICS summit, citing the process the European Union underwent to create the euro.
Ministry of Economic Development of Russia Expects No ‘Quick Breakthroughs’ on a Common BRICS Currency
The Ministry of Economic Development of Russia does not expect rapid decisions or announcements on issuing a common currency of the BRICS bloc, integrated by Brazil, Russia, India, China, and South Africa.
In an interview with CGTN, a Chinese news outlet, Deputy Economic Development Minister Vladimir Ilyichev indicated he was pessimistic about developing such a currency in the short term, even with the size and importance of the BRICS organization. He stated:
The BRICS group’s economy accounts for about 25% of global GDP. In our view, it needs an independent payment tool. Discussions of a BRICS currency are relevant. However, the creation of new currencies and payment tools is never a quick process.
Ilyichev explained that these processes take time, noting that the European Union debated the idea of the euro for years before its issuance.
The bloc’s leaders have been pushing for the de-dollarization of trade and using national currencies in bilateral settlements. Brazil’s President Luiz Inacio Lula da Silva has supported the issuance of a common currency during the ongoing BRICS summit, stating that such a currency would increase the payment options and reduce the vulnerabilities of the countries of the bloc.
Alternative Solutions
While Ilyichev explained that this goal was not likely to be achieved quickly, he also pointed out that complementary solutions could be proposed and adopted instead. He detailed that adopting a basket of currencies, or even an existent fiat currency from one of the BRICS countries could be considered. Also, he mentioned a payment system using the convened currencies would be necessary for making cross-border payments between countries of the bloc.
Ilyichev said that, in the current geopolitical situation, payment systems were affected by political circumstances, with Western countries exerting their influence on them according to their objectives and goals. This is another issue worrying BRICS countries and other nations, including Arab and Southeast Asian countries, Ilyichev stressed.
What do you think about a BRICS common currency for trade settlements? Tell us in the comments section below.