The Central Bank of Bolivia has lifted a blanket ban on using bitcoin and other cryptocurrencies in the national financial system, opening the doors for integrating exchanges and other crypto service providers into its economy. The institution derogated a 2020 resolution prohibiting financial institutions from facilitating crypto-related payments. Central Bank of Bolivia Lifts Bitcoin Ban, […]
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Venezuelan Authorities Announce Bitcoin Mining Ban, Confiscate Over 11,000 Miners to Face the Nation’s Energy Crisis
The Venezuelan National Power Ministry announced a special operation to disconnect all bitcoin mining farms from the grid. Authorities have seized over 11,000 bitcoin miners as the government seeks to reduce the power usage from high-power customers siphoning energy from the national electric system. Venezuelan Authorities Seize and Disconnect Over 11,000 Bitcoin Miners Amidst Energy […]
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Kenyan President Requests Bitcoin Miner Marathon Digital to Review Nation’s Cryptocurrency Regime
The Kenyan President William Ruto recently revealed that his government has appointed Bitcoin mining company Marathon Digital as its consultant to review its cryptocurrency regime. The U.S.-based Bitcoin miner is reportedly set to discuss electricity usage in cryptocurrency mining with the Kenyan Energy Ministry. Kenya’s Policy Shift Kenyan President William Ruto recently announced that his […]
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Jack Dorsey’s Block Faces DOJ Probe Over Alleged Transactions With Sanctioned Nations and Terrorist Groups
Department of Justice (DOJ) federal prosecutors from the Southern District of New York are investigating fintech company Block, formerly known as Square, for significant compliance failures in its transaction monitoring systems after a former employee revealed lapses that included processing transactions with sanctioned nations and groups linked to terrorism. Allegations against Block include handling transactions […]
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Former President Donald Trump’s Advisers Explore Penalties for Nations Ditching US Dollar
Former U.S. President Donald Trump’s economic advisers are reportedly devising strategies to deter nations from reducing their reliance on the U.S. dollar. Proposed deterrents include export controls, currency manipulation charges, and tariffs. Trump remains committed to preserving the U.S. dollar’s dominance as the global reserve currency. Nonetheless, a growing number of countries, particularly BRICS members, […]
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Transak Partners With Visa for Rapid Crypto to Fiat Conversion in 145 Nations
On Tuesday, Transak, a company specializing in payment infrastructure, revealed its partnership with the financial services powerhouse Visa. This collaboration aims to empower users in 145 nations with the capability to seamlessly exchange their crypto holdings into local fiat currencies, leveraging the Visa Direct platform.
Enhanced Crypto Liquidity: Transak’s Alliance with Visa Facilitates Swift Global Transfers
Transak, a provider of payment infrastructure for cryptocurrency assets and non-fungible tokens (NFTs), has entered into a partnership with the leading payment company Visa. This collaboration facilitates instant withdrawals of crypto funds to debit cards in 145 countries, as highlighted by Transak’s announcement.
“By enabling real-time card withdrawals through Visa Direct, Transak is delivering a faster, simpler and more connected experience for its users — making it easier to convert crypto balances into fiat, which can be spent at the more than 130M merchant locations where Visa is accepted,” the North America head of Visa Direct and Global Ecosystem Readiness, Yanilsa Gonzalez-Ore said.
The press announcement sent to Bitcoin.com News highlights that a key attribute of Visa Direct is its capability for immediate transaction processing. This translates to the possibility of money transfers being completed in nearly 30 minutes or less, marking a notable improvement compared to conventional banking practices, which often require several days.
“Combining this with Transak’s robust infrastructure and support for over 40 cryptocurrencies, the collaboration welcomes a new dawn for those who want to quickly exit the crypto market,” the company emphasized. The partnership follows Visa’s announcement earlier this month that it will include Web3 elements in its customized loyalty program solution.
What do you think about Transak’s and Visa’s partnership? Let us know what you think about this subject in the comments section below.
Lavrov Highlights 30 Nations’ Interest in BRICS as China-Saudi Pact Poses Challenge to US Dollar
In a recent statement by Sergey Lavrov, Russia’s Foreign Affairs Minister, he noted that the BRICS bloc is set to expand in 2024 with new members including the United Arab Emirates (UAE), Iran, and Saudi Arabia. He revealed that approximately “30 countries would like to establish partner ties with BRICS.” Additionally, as November drew to a close, China and Saudi Arabia forged a currency swap agreement valued at 50 billion yuan (.93 billion), which some interpret as Xi Jinping’s move to contest the supremacy of the U.S. dollar.
Lavrov: ‘30 Nations Aspire to Collaborate With BRICS’
This year, the BRICS bloc, consisting of Brazil, Russia, India, China, and South Africa, garnered significant attention as an intergovernmental organization. During the 15th BRICS summit in Johannesburg, South Africa, the world observed as the alliance extended invitations to join the bloc to the UAE, Saudi Arabia, Argentina, Egypt, Ethiopia, and Iran.
According to Russia’s TASS news agency, Lavrov announced on Tuesday that beyond integrating these new members next year, about 30 nation-states are interested in establishing partnerships with BRICS.
“In addition to the countries that have already joined our union, as of today, about 30 countries would like to establish partner ties with BRICS,” Lavrov stated. “We will continue to work on BRICS bolstering its positions as one of the pillars of a multipolar world.” The Foreign Affairs Minister added:
The theme of our watch in BRICS will be ‘Strengthening Multilateralism for Equitable Global Development and Security.’ Over 10 Russian cities will host more than 200 economic, political, and public events. It all will culminate with the BRICS summit in Kazan next October.
Telegraph Reporter Says China-Saudi Deal ‘Threatens to Topple American Hegemony’
Beyond Lavrov’s remarks, Melissa Lawford of The Telegraph posited in an editorial that Xi Jinping’s recent 50 billion yuan currency swap deal “threatens to topple American hegemony.” The agreement, designed to endure for three years with a possible extension through mutual concurrence, “will help strengthen financial cooperation… expand the use of local currencies… and promote trade and investment,” as per the People’s Bank of China’s declaration.
Lawford’s editorial suggests that “President Xi has ambitions to challenge the global dominance of the dollar.” She further reports that “BRICS members have been discussing how to make a common currency that can be used in emerging markets.”
Russia’s Lavrov specified that through BRICS partnerships, the bloc intends to enhance initiatives such as the BRICS Plus and Outreach platforms. These efforts are designed to widen the sway and collaboration of BRICS nations with other countries and areas, as well as to establish trade agreements, including currency swaps.
What do you think about Lavrov’s statements and The Telegraph editorial about the China-Saudi Arabia currency swap deal? Share your thoughts and opinions about this subject in the comments section below.
Franklin Templeton’s Executive Expects All Nations to Hold Bitcoin — ‘Every Country Is Going to Have to Hold Some Reserves’
An executive at trillion-dollar asset manager firm Franklin Templeton expects bitcoin to become “something that every treasury needs to hold.” She believes that “every country is going to have to hold some reserves,” emphasizing that the cryptocurrency is “working its way increasingly into the traditional banking ecosystem as just a foundational part of that system.”
Kaul: Bitcoin Could Be Used as Base Unit of International Trade
Franklin Templeton’s senior vice president and head of Digital Asset and Industry Advisory Services, Sandy Kaul, discussed the future outlook for bitcoin in an interview with Natalie Brunell, published Thursday. Before joining Franklin Templeton, Kaul held positions at Shearson Lehman Brothers, Citi, and Goldman Sachs Asset Management.
A global leader in investment management with a presence in over 150 countries and serving millions of clients, Franklin Templeton reported .37 trillion in assets under management at the end of September. The asset manager has also applied to launch a spot bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).
Regarding the broader adoption of bitcoin and the potential for nation states to embrace it, the executive said: “I think you’re already starting to see that.” She explained that less developed nations combine “some of their buying power around bitcoin” and use it “as a way to compete more effectively with bigger companies and bigger countries and bigger economies.” Emphasizing, “I think you’ll see more of that,” Kaul stressed:
I think also that it’s going to become something that every treasury needs to hold because portions of their business will just be facilitated more easily through bitcoin payments than through foreign exchange conversions that need to happen to enable cross-border trade today.
While noting that a lot of people see promises in central bank digital currencies (CBDCs) as “there will be a lot of efficiencies that get created by them,” she argued: “But those are going to still require all of that translation, and exchange rate risk that you carry in moving from country to country whereas a bitcoin is a bitcoin in every country.”
Kaul opined: “So I do still think that the potential to see this used as the base unit of international trade exists. I think at a minimum you are gonna see it used for certain types of trade.” She asserted:
That means that every country is going to have to hold some reserves and so I just see it working its way increasingly into the traditional banking ecosystem as just a foundational part of that system.
She concluded: “I think the question then just becomes: ‘Over time do people start to gravitate more to something that works globally and isn’t tied to any government’s policies? And that I think we’ll have to see play out. But intuitively, it feels like it absolutely could.”
Do you agree with Franklin Templeton’s head of digital asset research? Let us know in the comments section below.
Global Debt Spikes to Record $307 Trillion Driven by US, Developed Nations
The world’s debt has surged to a record high level in the second quarter, according to the Institute of International Finance (IIF). The increase has also helped lift the global debt-to-GDP ratio which had been declining for seven quarters but is now projected to reach 337% by the end of this year.
Major Markets Behind Latest Surge in Global Debt, Slower Growth and Inflation Cause Debt Ratio Rise
Global debt has hit a record 7 trillion in Q2 of 2023, jumping by trillion in the first half of the year despite rising interest rates that have been curbing bank credit, Reuters and Bloomberg informed, quoting a report by the IIF.
On Tuesday, the financial services trade group, which represents the world’s largest international banks and financial institutions, further pointed out that world debt has ballooned by a “staggering” 0 trillion over the past decade.
Debt has also resumed its increase as a share of the global gross domestic product (GDP), climbing to 336% from 334% at the end of 2022, and is expected at around 337% by the end of this year. The ratio rise, attributed to big budget deficits, slower growth and decelerating inflation, comes after almost two years of surging prices, the authors remarked and explained:
The sudden rise in inflation was the main factor behind the sharp decline in debt ratio over the past two years.
This year’s spike in global debt has been mainly caused by developed economies, which account for over 80% of the increase, with the U.S., where federal debt has exceeded trillion according to a recent report, Japan, the U.K., and France having the highest rises. The largest emerging economies, China, India and Brazil in particular, have registered increases as well.
“As higher rates and higher debt levels push government interest expenses higher, domestic debt strains are set to increase,” the IIF elaborated. Interest rates in the United States are expected to remain high for a long time, limiting investment in emerging markets.
On a positive note, the IIF highlighted the lowest level of household debt as a share of advanced economies in two decades. “Should inflationary pressures persist in mature markets, the health of household balance sheets, particularly in the U.S., would provide a cushion against further rate hikes,” the organization commented.
Do you think global debt will continue to increase in the near term? Share your thoughts on the subject in the comments section below.
Latam Insights: Crypto Adoption Booms in Latam Nations, Milei Bashes Socialism
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Brazil, Argentina, and Mexico are present in Chainalysis’ 2023 Global Crypto Adoption Index; Argentine presidential candidate Javier Milei blames socialism for Argentina’s economic decline, and Bull Bitcoin expands to Costa Rica.
Brazil, Argentina, and Mexico Among the Countries With Most Crypto Adoption
Brazil, Argentina, and Mexico are among the 20 countries in the world where cryptocurrencies are used most, according to the Chainalysis 2023 Global Crypto Adoption Index, a yearly report that seeks to estimate the countries where the most grassroots crypto adoption is located.
According to several metrics, Chainalysis estimated that India, Nigeria, and Vietnam were the three countries with the most crypto adoption in the world, as the company acknowledged that while global crypto grassroots adoption was down, it was growing in lower medium-income countries — where Gross National Income (GNI) per capita was in the ,086–,255 range.
The first Latam country ranked in the report, and the only one in the top ten (ranked ninth), is Brazil, which has reported growing levels of people and companies transacting in crypto recently, according to the Brazilian tax authority, the Receita Federal. Argentina, which has registered inflation levels of over 120% and faces a devaluation crisis, ranks 15th, while Mexico trails them in 16th place.
Milei Blames Argentine Economic Decline on Statism and Socialism
Javier Milei, an Argentine presidential candidate, has blamed the economic decline of Argentina on the socialist measures enacted by prior governments and on the size of the state in the country. Milei, who won the preliminary elections in August and is expected to win the presidential elections, explained that Argentina started embracing socialism 100 years ago.
In a recent interview with former Fox News anchor Tucker Carlson, Milei stated:
The analogy of frogs in a pot of water is useful here. When you turn up the heat slowly, the frogs don’t realize it. Until the time comes and when they try to jump out, it’s too late and they end up dead.
Bull Bitcoin Expands to Costa Rica
The Canada-based Bull Bitcoin exchange has announced its expansion to Costa Rica, where it will integrate one of the most used payment systems, SINPE Movil, to bring Bitcoin to more people in the country. Francis Pouliot, CEO of Bull Bitcoin, explained that this move will allow foreigners and Costa Ricans to exchange bitcoin per fiat currency “without needing complicated international bank transfers and expensive foreign currency conversion.”
The exchange will offer these services through the Bitcoin Jungle Wallet, and it expects to keep expanding internationally over the next 12 months.
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What do you think about this week’s Latam Insights report? Tell us in the comment section below.