Cryptocurrency exchange Binance posted on social media platform X Thursday that users can purchase cryptocurrency using Mastercard, Visa, or SEPA for bank transfers. The announcement led to confusion among some users regarding the reintroduction of Binance-branded credit cards. Binance Customer Support clarified that the current facilities allow the use of existing payment methods to buy […]
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El Salvador Launches Treasury Holdings Site, Confirms Daily Bitcoin Purchases
The Bitcoin Office of El Salvador (ONBTC) has launched a site that allows anyone to confirm the treasury holdings of the country, offering a large degree of transparency in its finances. The site, composed as a custom instance of mempool space, a popular block explorer, confirms that the country has been purchasing one bitcoin per […]
Bitcoin News
South Korea Proposes Ban on Credit Card Crypto Purchases
Amidst a national surge in crypto trading, South Korea’s FSC is proposing a significant change to their credit finance laws, potentially barring citizens from the use of credit cards in cryptocurrency transactions.
South Korea Aims to Tighten Crypto Regulations with Proposed Credit Card Ban
The South Korean Financial Services Commission (FSC) is considering an amendment to its credit finance act that would ban the use of credit cards to purchase cryptocurrencies. The Jan. 3 post on the FSC website states that this move is aimed at curbing the illegal outflow of domestic funds and speculative activities associated with buying crypto on foreign exchanges. The proposed change seeks to align the treatment of virtual assets with other prohibited payment methods, addressing concerns about money laundering and the encouragement of speculative behavior.
The FSC’s initiative comes as part of a broader effort to tighten regulations on the local cryptocurrency market, which has been under increased scrutiny. At the same time, South Korea is experiencing a surge in crypto, with two Korean exchanges Upbit and Bithumb contributing over 10% to the global trading volumes. While domestic exchanges in South Korea are subjected to strict rules requiring transaction authentication and partnerships with local banks, foreign exchanges do not face the same level of regulation. The proposal, open for public feedback until February 13, 2024, aims to reduce risks and enhance the transparency and security of crypto transactions.
If passed, the amendment would prevent South Korean citizens from using credit cards to buy cryptocurrencies, effectively limiting their access to virtual assets via foreign platforms. It is possible this is connected with findings from recently introduced tax regulation that, in September 2023, revealed South Koreans held over billion worth of crypto holdings in overseas accounts for the year.
This proposal is indicative of the growing global trend of regulatory bodies seeking to establish a more controlled and secure cryptocurrency environment, reflecting the heightened attention crypto continues to accrue. The decision is expected to be reviewed and potentially implemented in the first half of 2024.
Would banning crypto purchases from credit cards substantively impact most people’s ability to acquire crypto? Share your thoughts and opinions about this subject in the comments section below.
Economist Steve Hanke: US Dollar Weaponization Has Powered Record Central Bank Gold Purchases
Steve Hanke, professor of applied economics at Johns Hopkins University, has discussed how U.S. policies have driven central bank gold purchases to record levels this year. In an interview, Hanke stated that these purchases were motivated by the weaponization of fiat currencies like the dollar, which has driven countries in “de-dollarization mode” to take refuge in gold.
Steve Hanke Believes Rise in Central Bank Gold Purchases Has to Do With U.S. Dollar Weaponization
Professor of Applied Economics at Johns Hopkins University Steve Hanke, a Bitcoin critic and dollarization proponent, has given his take on the return of gold as a reserve currency for central banks. In a recent interview on Jesse Day’s Commodity Culture, Hanke revealed his position about the future of gold as a reserve asset and how U.S. policies have influenced a rise in central bank gold purchases.
Hanke believes that the recent rise in U.S. sanctions, the weaponization of the U.S. dollar, and a climate of uncertainty have caused central banks to purchase gold at record levels.
He explained:
You never exactly know what these central banks are going to do, but the trend right now is a lot of central bank buying, and the reason behind this is that there is a lot of uncertainty, everything has become more politicized in the realm of fiat money.
As a result, central banks that had not been players in the gold market have now risen as significant buyers, more so those that are in what Hanke calls “de-dollarization mode” and want to reduce their exposure to the U.S. dollar due to the increasing enactment of sanctions.
Bullish Stance
Hanke emphasized that since the 9-11 events, the utilization of sanctions has been steadily increasing, but that in the Biden administration, they are “on steroids.” Hanke called this trend “utter stupidity,” causing countries like China and Poland to increase their gold purchases.
Poland, which has not traditionally been a strong gold buyer, has accumulated 105 tonnes of gold year-to-date, in line with its policy of having 20% of its reserves in gold, according to statements from National Bank of Poland (NBP) President Adam Glapiński.
This situation has caused Hanke to declare a bullish stance on gold for the future, explaining that from a fundamentals perspective, gold looks pretty strong, even if he is not a gold bug in the vein of Peter Schiff, another famous economist.
What do you think about the future of gold markets in relation to de-dollarization? Tell us in the comments section below.
US Lawmaker: Americans Don’t Need CBDC That Can Track Purchases Like China’s Digital Yuan
Several lawmakers have expressed concerns about the privacy risks of the Federal Reserve issuing a central bank digital currency (CBDC). “Americans have a right to financial privacy,” one congressman said, emphasizing: “We do not need a CBDC that can track your purchases like China does with their digital yuan.” Another noted: “CBDC is to sound money what dictatorship is to freedom.”
‘Americans Have a Right to Financial Privacy’
Multiple U.S. lawmakers have warned against the issuance of a central bank digital currency (CBDC) by the Federal Reserve. Congressman French Hill (R-AR), chairman of Congress’ Digital Assets Subcommittee, wrote on social media platform X on Wednesday:
Americans have a right to financial privacy. We do not need a CBDC that can track your purchases like China does with their digital yuan.
“The authority rests with Congress, not unelected bureaucrats, to create and implement a CBDC. And that’s non-partisan,” the lawmaker stressed.
The congressman has been a vocal critic of the Federal Reserve potentially issuing a CBDC. “I understand why Americans are concerned about CBDCs and the potential for a Big-Brother-like surveillance state. I share these concerns. It is a priority of mine to make sure the federal government cannot and does not proceed with issuing a CBDC without Congressional approval,” Hill stated in October last year.
The lawmaker introduced HR 3506, the 21st Century Dollar Act, in 2021 “to make sure U.S. government has a strategy to maintain the dollar as the primary global reserve currency, with or without a CBDC,” he previously detailed on X, formerly Twitter.
Several other lawmakers have similarly warned about the risks of the Fed issuing a central bank digital currency. Congressman Patrick McHenry (R-NC) tweeted in May last year: “The Federal Reserve can’t move forward with a CBDC without authorizing legislation from Congress. Before taking action, Congress must work to understand the risks a CBDC could pose to privacy, private sector innovation, and American consumers.”
Rep. Warren Davidson (R-OH) stated on Aug. 25: “CBDC is to sound money what dictatorship is to freedom. The existence of x precludes y. Coincidentally, if you wanted to establish or enforce a dictatorship, CBDC would be the one ring to rule them all.” He previously said:
The Federal Reserve is building the financial equivalent of the Death Star. Central bank digital currency (CBDC) corrupts money into a tool for coercion & control. Congress must swiftly ban then criminalize any effort to design, build, develop, test or establish a CBDC.
Do you agree with U.S. lawmakers about the danger to privacy of the Fed issuing a CBDC? Let us know in the comments section below.
Whale Purchases $38 Million Worth Of SHIB, A Rebound On The Horizon?
Shiba Inu (SHIB) token has witnessed high-value transactions again, leading to intrigue among its community. As significant amounts of SHIB change hands, many wonder if these moves signal a forthcoming positive shift in its market position or a rebound, as the asset is currently in a downtrend.
Whale Alert, a renowned blockchain tracking platform, disclosed that a transaction of 4.65 trillion SHIB tokens, equating to approximately .39 million, moved from Bitvavo to an unidentified wallet.
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4,653,778,173,637 #SHIB (38,391,343 USD) transferred from #Bitvavo to unknown wallethttps://t.co/KFZzJIvU5q
— Whale Alert (@whale_alert) August 21, 2023
High-Value Transactions Coincide With Shibarium’s Developments
It’s worth noting that this isn’t an isolated event. A similar transaction occurred just a day prior, where an almost equivalent amount of 4.6 trillion SHIB tokens (around .70 million) was transferred from one undisclosed wallet to another.
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4,669,778,173,637 #SHIB (38,707,791 USD) transferred from unknown wallet to unknown wallethttps://t.co/c6LPXZFq2h
— Whale Alert (@whale_alert) August 20, 2023
These high-value transfers correlate with the start of Shibarium, the Ethereum-based layer-2 blockchain, which has been the cause of a spike in SHIB transactions. The surging activity, especially after introducing the Shibarium blockchain, naturally raised eyebrows within the Shiba Inu community.
To address rising concerns about the safety of assets, the Shiba Inu team came forward in its “All Is Well” blog post, offering clarity on the technical issues, and emphasizing the security of the users’ assets.
SHIB Rebound On The Horizon?
While it’s undeniable that there may be growing attention on Shiba Inu, especially after these whale activities and the Shibarium blockchain’s developments. It may be too soon to forecast the exact trajectory SHIB will take.
However, analyzing the Shiba Inu price chart suggests there could be a potential rebound, though it might not be imminent. On the 4-hour chart, Shiba Inu displays a pronounced downward wick. This indicates the presence of more liquidity in this downside range, which could suggest further decline as market makers may seek to capture this liquidity.
To clarify, a wick refers to the thin line/vertical line above or below the main body of a candlestick. The wick represents an asset’s highest and lowest prices during a specific time frame, such as the candle marked above.
Regardless of the above analysis, significant whale purchases highlight the commitment of Shiba Inu’s investors. Such activities underscore their interest in adding to their SHIB holdings. This growing attention on SHIB is especially noteworthy given its recent Shibarium project launch.
Featured image from Unsplash, Chart from TradingView
Paypal Pauses UK Crypto Purchases Amid Regulatory Changes; Assures Resumption in Early 2024
In recent communications to its U.K. clientele, Paypal has announced a temporary suspension of cryptocurrency purchases starting October 1, 2023, with plans to resume in early 2024. Notably, even amidst this hiatus, users can continue to hold their crypto within the Paypal ecosystem and are free to liquidate their digital holdings whenever they wish.
Paypal Temporarily Halts UK Cryptocurrency Buys
British Paypal users will find their ability to acquire digital currencies curtailed post-October 1, 2023. This temporary measure, as highlighted in an email to U.K. customers, is set to last until sometime in the early part of 2024, with the company assuring, “We expect to re-enable crypto purchases in early 2024.”
This development trails Paypal’s introduction of a stablecoin, PYUSD, anchored to the U.S. dollar’s value. To reflect on the timeline, Paypal had unveiled its crypto services in the U.K. in August 2021, with a full-fledged deployment by September. From that juncture, users could transact in four diverse digital currencies.
The catalyst behind this interim cessation? Paypal cites the “new rules enacted by the UK Financial Conduct Authority (FCA) that require crypto firms to implement additional steps before customers can purchase crypto.” The digital payment juggernaut elaborated, “While we work to satisfy these new regulations, you won’t be able to buy crypto using Paypal.”
Emphasizing its stringent adherence to regulatory frameworks, Paypal added:
We remain deeply committed to our compliance obligations and Paypal consistently works closely with regulators around the world to adhere to applicable rules and regulations in the markets in which we operate.
Though the email remains non-committal on a specific restart date, Paypal expressed its regret for the potential inconvenience. The company reassured its U.K. customer base, promising to alert them once the service is back in action, enabling them to dive back into crypto acquisitions.
What do you think about Paypal’s decision to halt U.K. crypto purchases? Share your thoughts and opinions about this subject in the comments section below.
Whale Purchases $10 Million stETH In The past Day, Here Are Possible Reasons Why
The crypto verse has recently witnessed a massive splash as an unidentified entity dove deep into the Ethereum ecosystem. A recent report from Lookonchain reveals that in a span of 24 hours, the whale has purchased million worth of Lido Staked Ethereum (stETH).
The Big Purchase And Past Activities
Lookonchain, an on-chain analytics firm, broke the news earlier today on their X (formerly known as Twitter) account revealing that a whale address was responsible for the withdrawal of 10 million Dai (DAI) from Maker.
The smart whale withdrew 10M $DAI from @MakerDAO and bought 5,403 $stETH again at an average price of ,851 6 hrs ago.https://t.co/rIWyjsfRpf pic.twitter.com/aGwmc46gmc
— Lookonchain (@lookonchain) August 10, 2023
According to the firm, this withdrawal wasn’t without purpose as the whale used the funds strategically invested to purchase 5,403 Lido Staked Ethereum, each at an average price of ,851.
For those tracing the activities of this whale, this isn’t a maiden voyage into the stETH seas. As reported by Lookonchain, this exact address recorded two hefty transactions on 24 July 2023.
The first transaction saw the whale dispensing 5.17 million USD Coin (USDC) to acquire 2,802 stETH at a rate of ,844 each. Not stopping there, the whale converted a subsequent 10 million USDC into 5,421 ETH, which was then fully transitioned to stETH.
Possible Reasons For Buying stETH
While the motives of crypto whales, just like their real-world counterparts, often remain beneath the surface and obscured from the prying eyes of small investors, given the nature of this particular whale’s stETH acquisitions, it’s plausible to hypothesize some reasons behind its latest move.
Strategic staking could be a reason behind the whale’s million stETH purchase. Ethereum’s transition to a proof-of-stake mechanism through ETH 2.0 has opened doors for staking returns. Acquiring stETH, a representation of staked ETH, could be a strategic move by the whale to earn rewards while maintaining liquidity.
Another plausible hypothesis could be speculation for price appreciation. It is worth noting that the whale might anticipate a significant price appreciation in the near future and investing a sizable amount can yield substantial returns if the price moves in the favored direction.
Diversification of their portfolio can also be a possible reason behind the whale’s substantial stETH purchase, especially given the significant amounts of USDC previously deployed by the whale, so moving some of these holdings into stETH may be a calculated strategy to achieve diversification.
However, despite the large buys, stETH hasn’t seen any significant movement. Particularly, the asset has only declined by 0.5% with a current trading price of ,850.
Featured image from Unsplash, Chart from TradingView
Bitrefill Adds Support for eSIM Purchases With Cryptocurrencies
Bitcoin-friendly mobile top-up platform Bitrefill announced support for eSIM purchases with a number of cryptocurrencies. The service will allow travelers to have access to fast internet in different countries around the world after buying prepaid data plans using their digital coins.
You Can Now Buy eSIM Cards From Bitrefill Using Your Crypto Wallet
Bitrefill, a popular website for buying gift cards and mobile top-ups with cryptocurrency, has introduced support for eSIM purchases. The new feature will allow crypto users to have instant mobile internet connection without the need to change SIM cards when they travel, the company highlighted in a blog post on Tuesday, stating:
In our quest to continually innovate and make the lives of our customers easier to live on crypto, you can now enjoy seamless global connectivity, no matter where you are, without the hassle of physical SIM cards.
An eSIM is a digital SIM card that allows you to activate a cellular plan from a carrier without using a physical SIM. That lets you keep your primary SIM card while purchasing and using an eSIM card, which is practical and saves time, Bitrefill explained.
The service can also save you unpleasant surprises in terms of unexpected roaming costs as you will be using prepaid data. “If you’re a traveler, no matter if frequent or occasional, an eSIM is the most flexible and practical solution to get internet access almost anywhere in the world,” the company added.
Bitrefill offers crypto enthusiasts a range of local, regional, and global eSIMs. To take advantage of the feature, you need to first make sure your mobile device supports this type of digital SIM card and then choose an eSIM plan. You need to provide an email address at checkout.
The eSIMs can be bought with bitcoin (BTC) and ethereum (ETH), among other cryptocurrencies and stablecoins like tether (USDT). Bitrefill also accepts major fiat currencies, including U.S. dollar, euro, British pound and more.
What do you think about Bitrefill’s new eSIM offering? Tell us in the comments section below.
Central Banks Resumed Gold Purchases in June
Central banks ramped up gold purchases in June, according to statistics from the International Monetary Fund (IMF). In this period, central banks added 55 tonnes of gold to their reserves after three months of net selling, with China purchasing the most gold (21 tonnes).
Central Banks Back to Purchasing Gold in June
The world’s central banks reversed their three-month gold selling spree to make purchases during June. According to international financial statistics issued by the International Monetary Fund (IMF), net gold purchases during June reached 55 tonnes, with six central banks purchasing gold during this period.
One of the largest purchasers of gold was the Central Bank of Turkey, which also resumed purchases after having been a net seller during recent months due to a ban on gold imports after an earthquake in February. Nonetheless, the Central Bank of Turkey added 11 tonnes to its official reserves, which reached 440 tons by the end of June.
Krishan Gopaul, senior analyst for Europe, Middle East, and Africa (EMEA) at the World Gold Council, qualified Turkey’s activity as “pivotal” for the global total, helping the trend in central bank demand to remain “steadfast.”
Six more banks also purchased gold, with only two selling during June, according to the statistics.
China Continues Buying Spree
The biggest gold buyer during June was China, with the People’s Bank of China (PBOC) adding 21 tonnes to its reserves. Even when other banks turned sellers during the last three months, China kept buying gold, maintaining an eight-month buying spree. China is the biggest gold buyer year-to-date, having added 103 tonnes during 2023.
The National Bank of Poland was also one of the largest gold purchasers in June, adding 14 tonnes to its reserves as part of a government plan that could lead the country to purchase up to 100 tonnes of gold. Poland has purchased gold in the last three months, adding 48 tonnes this year.
Uzbekistan, the Czech Republic, Qatar, and India also added to their gold reserves during June.
Only two countries sold significant amounts of the precious metal during June: Kazakhstan and Singapore. Kazakhstan sold 3 tonnes during the period, signaling that it might offload more in the rest of the year, as its central bank compromised to lower the share of gold in its reserves to an “optimal level” of 50% to 55%.
The Monetary Authority of Singapore also reduced its reserves by 1 tonne.
What do you think about central banks purchasing gold again in June? Tell us in the comments section below.