Blockchain Events

The US Treasury Secretary Janet Yellen has warned about the rising misuse of cryptocurrencies, she points out that it has been used as a system to finance terrorism and online drugs businesses. 

According to the administration report on February 9th and 10th, the inauguration Financial Sector innovation Policy Roundtable that’s hosted by US Treasury Department ”the Roundtable closed the regulator and policymaker and also brought the private sectors expert to express their analysis on policy issues and innovative technology that overcome the spreading problems ”

We live in an era of high risk regarding financial crimes and data privacy. The pandemic has also caused most of the life online and so the surge in related crimes. 

She stated,

“The misuse of cryptocurrencies and virtual assets is a rising issue, too. I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of online drug speculators; they’ve been a system to finance crime.”

J Yellen is in favor of effective cryptocurrency regulation to strengthen the new digital assets-based industry.

Similarly, the mayor of Miami is a strong supporter of bitcoin and is determined to transform Miami into a city that is friendly to cryptocurrencies.

However, misuse of cryptocurrency for money laundering and drug businesses is a serious concern, and the ECB director Cristine Lagarde has already called for global regulations.

Francis Suarez, the mayor of Miami, stated in an interview that he desires to develop Miami as a crypto-friendly city. He explained that their policymakers are analyzing and assessing cryptocurrency and blockchain-friendly regulations. He said that “[Miami is] making sure that we have the most progressive crypto laws, and we want to make sure that we believe that if all things are equal, we win. So, we just want to equalize the playing field. We want to make sure that nobody has an advantage over us based on laws that are easily changeable.”  

The mayor appreciated Wyoming by saying “kudos for being smart” by facilitating the crypto industry. He further elaborated that each and every city across the US and around the globe should strive to develop its technology for the better future of their coming generations. Anyone who hesitates or unwilling to accept the technological innovations will certainly be affecting its future generations. 

The Mayor did not reveal the exact deadline for the regulation announcement and their implementation. However, the Suarez crypto-friendly approach is being appreciated in the crypto industry.   

Recently, the director of the European Central Bank (ECB), Cristine Lagarde urged for global regulations regarding Bitcoin, and other digital assets. Similarly, the Panama lawmaker also drafted a bill, demanding the need for crypto regulations.

The CEO of PayPal, Daniel Schulman stated that his firm is launching a new dedicated business unit to initiate a huge PayPal crypto aspiration. 

On Wednesday, February 3rd, 2021, Daniel Schulman declared that the current financial system is antiquated and that his firm will be transferring much of its assets into blockchain and digital currencies.

Daniel Schulman further explained: “We all know the current financial system is antiquated, and we can envision a future where transactions are completed in seconds, not days; a future where transactions should be less expensive to complete; and a future that enables all people to be part of the digital economy, not just the affluent. We are significantly investing in our new crypto, blockchain, and digital currencies business unit in order to help shape this more inclusive future”.

During the first quarter of 2021, the new crypto business is expected to be launched, moreover Schulman further detailed that customers will be able to utilize Bitcoin, Ethereum, and many other cryptocurrencies at 29 million various merchant locations around the globe.  

Financial giants (e.g., PayPal, etc.) and hedge funds (e.g., Grayscale, etc.) are consistently evolving with the rapidly changing financial system. At the same time, some states’ financial policymakers are urging for new regulations to control the pace of cryptocurrencies’ evolutions and the need for national digital currencies like digital Yuan and digital Euro. 

The Central Bank of Nigeria (CBN ) warns financial institutions in case of facilitating crypto payments and other digital assets transactions.

The circular indicated that cryptocurrency transactions are forbidden within the country and involved regulated institutions will be subject to strict sanctions.

On the CBN site, the circular is available and distributed across regulated financial institutions, especially informing non-bank financial institutions, etc. that are facilitating payment transactions for cryptocurrency exchanges and individual accounts.

The CBN has already notified that Bitcoin, Ethereum, and all other virtual currencies are not legal in Nigeria and moreover, the involved institutions and banks are facilitating such transactions at their own risk.

A huge number of youngsters in Nigeria are taking advantage of cryptocurrency to avoid various challenges often they face in regular money transfer services like high transactions fee and slow banking processes.

Ban on cryptocurrency exchanges will highly suffer the running crypto brands across the country and would hinder the rising crypto market and young crypto enthusiasts.

In Croatia, Tifon gas stations accepting cryptocurrency as payment across the country in collaboration with crypto platform PayCek.

 Around the country, the 46 gas stations of Tifon company will accept Bitcoin (BTC), Ethtereum (ETH), ripple (XRP), Stellar(XLM), and EOS as stated by its CEO Poslovni Dnvnik to attract and facilitate more tourists. 

PayCek, a crypto platform of Croatian company Electrocoin will directly convert cryptocurrency into Croatia’s fiat currency and pays to Tifon at the time of purchasing.

Ana Lokas, the CFO of Tifon’s, says “ Even though cryptocurrencies payments are still in their infancy in Croatia, with the introduction of this payment option at all Tifon’s points of sale, we expect their further development and growth, especially during the tourist season, given the more widespread habits of using this type of payment by foreign customers.”

During the pandemic, cryptocurrencies received huge popularity around the globe and a significant number of retail and institutional investors are making their entry into the cryptocurrencies market. Particularly in the USA, bitcoin investment surpassed the gold investment sentiments and small business owners are preferring to switch to crypto. The rising interest in digital assets is compelling the national financial policy makers to launch their own central bank digital currencies and bring about new regulations.

Bitflyer, a Japanese crypto exchange conducted a survey and published their research finding. The conclusion shows that Bitcoin investment popularity is surging in US citizens as compared to Japanese.

The Bitflyer research paper jumps deep into cryptocurrency opinions and investment sentiments in the US compare to the Japanese market.
A simple question regarding crypto acceptance is put forward to the survey participants that conclude a much more difference of opinion between American and Japanese citizens.
In survey 76% American favors cryptocurrency while 78% Japanese prefer cash over it.

The pie chart indicates how the two markets are far away in cryptocurrency acceptance. However, the research

didn’t show when the survey conducted and whether the number of opinions collected is sufficient to conclude? As the particular surge of Bitcoin, Ethereum, and many other cryptocurrencies have occurred in the last few months across the globe.
Bitcoin and other crypto-assets are at the top amongst investors, pushing Gold in the fourth position.
A user named sylsau on Reddit commented,
“This is only the beginning.
Demographics play in favor of Bitcoin over gold.
The young generation that will gradually come to power will not buy gold but Bitcoin to protect themselves from the ravages of monetary inflation. It is a question of pure logic.”
It’s these concerns that have created unrest among traditional financial policymakers. Various voices to regulate cryptocurrency and urgent need of Digital Yuan, Digital Euro and use of stable coins are either experimented with or being proposed.

Bitcoin could hit approximately $535,000 provided institutional investors invest 10% of their reserves in it. The institutional investors are focused on buying Bitcoin (BTC) for long terms holding. For example, a single transaction of 15,200 BTC from Coinbase to custody wallet shows that institutions are busy accumulating Bitcoins to be prepared for the next possible bull run.

The report suggests that this time the Bitcoin price is less likely driven by extreme publicity and rumors but appearing to be more trust and acceptance. Mr. Ki Young Ju tweeted,

“Looking at the Transaction, it went to custody wallets that only have in-going transactions. It’s likely to be OTC deals from institutional investors. I believe this is the strongest bullish signal.”

The Ark predicts that in the longer run, institutions may impact bitcoin price, as explained
“Based on ARK’s simulated portfolio allocations, institutional allocations between 2.5% and 6.5% could impact bitcoin’s price by $200,000 to $500,000.”

Grayscale and other financial institutions may trigger a new bull run to test the ATH bitcoin value. Similarly, Grayscale is consistently offering institutional interest, a sign for buying more and more Bitcoin, Ethereum, and other altcoins.

The central bank of India is evaluating and considering a state-backed digital rupee. The Reserve Bank of India (RBI) reviewing the need and endurance of central bank digital currency (CBDC). The RBI has shown interest to launch a digital rupee.

Bitcoin, Ethreuem, and many other digital currencies are becoming highly popular among the young generations over the last few years.

 On January 25th, 2021, RBI launched a document entitled “Payment and Settlement System of India”.

The document states :

“Private digital currencies (PDCs) / virtual currencies (VCs) / cryptocurrencies (CCs) have gained popularity in recent years. In India, the regulators and governments have been skeptical about these currencies and are apprehensive about the associated risks.”

However, the document further says that, 

“RBI is exploring the possibility as to whether there is a need for a digital version of fiat currency and in case there is, then how to operationalize it.”

In 2018, the RBI has entirely prohibited the regional banks from providing the services to cryptocurrency exchanges. However, in early 2020 the rule was sooner reverse by the Supreme Court of India.

Is India following the footprints of the Chinese digital Yuan program?

India enlists in the nations that have shown a significant interest in their own CBDC. 

Since 2017 China has been working on the digital yuan project, the scheduled date of digital yuan launching was 2020. However, due to the COVID-19 pandemic, the project has been delayed as reported by Asia Times. Currently, the Chinese digital Yuan project is in its early experimental phases. Similarly, the Digital Euro project is in its analysis and discussion phase. Financial Policymakers are considering, the CBDCs and strong global regulation to control the rising cryptocurrency and decentralized finance system.

A letter has been issued by the Ministry of Labor and Social Protection of the Russian Federation in which it’s mentioned that certain kinds of government servants have to declare their digital assets (Bitcoin, Ethreum, etc.) by April 1st, 2021. The letter explains that Russian federal and provincial levels officials consisting of Russian Bank members and government-owned associations are not authorized to own cryptocurrencies and any digital assets governed by laws of foreign countries.

On December 10, 2020, Russian President Vladimir Putin signed a law that obligates officials to confirm the information about the cryptocurrency and tokens belong to them, their spouse, and children. In between January 1st, 2021 to June 30th, 2021, the concerned persons should submit the first report. The new decree aims to control corruption, mentioned in the letter.

On January 1st, 2021, the decree on digital financial assets filed in Russia, recognized cryptocurrencies and yet restrict their adoption as mentioned in it. In early December 2015, the outline law on the tax of transactions with cryptocurrency was sent to Duma State.

As the crypto market is gaining momentum, financial experts and policymakers are urging for more and more regulations. Many small nations and some global economies like China and European Union are feeling an urgent need for their Central Bank Digital Currencies (CBDC). China is currently experimenting with Digital Yuan while European Commission is willing to work on Digital Euro Project.