Autor Cointelegraph By Prashant Jha

Bank of Korea completes first phase of digital currency pilot

Bank of Korea completes first phase of digital currency pilot

Uverejnil používateľ | jan 24, 2022 |

The Bank of Korea has successfully completed the first phase of its central bank digital currency mock testing started in August 2021. The South Korean central bank said that the first phase of its CBDC mock testing was completed in December while the second phase is currently underway, reported YNA news. The first phase of the mock test involved some of the basic functions of the sovereign digital currency such as distribution and issuance.The second phase of the central bank digital currency (CBDC) pilot would test real-world functionalities such as cross-border remittance, retail payments and offline payments. The bank stated:”We will confirm the possibility of operating various functions, such as offline settlements, and the application of new technologies, such as one intended to strengthen privacy protection during the second phase of the test.”Bank of Korea (BOK) is also looking to onboard financial institutions for the second phase, quite similar to what China is currently doing with its digital yuan. However, unlike China, BOK-issued digital currency would also focus on user privacy.The second phase is expected to complete by June 2022, after which the central bank plans to chalk out an official launch and commercialization plans. Related: Does a Fed digital dollar leave any room for crypto stablecoins?South Korea has thus joined the select group of nations that have either started or completed the pilot phase of their CBDC testing. As per data from the Atlantic Council, currently, 91 nations are working on their sovereign digital currency and only 14 nations have reached the pilot phase. World CBDC Development Tracker Source: Atlantic CouncilSouth Korea has become one of the leading crypto-compliant nations over the past few years and recently revealed its plans to become a world leader in the metaverse as well.  While China is currently at the forefront of the CBDC game, many European and Asian counterparts have accelerated their development plans to catch up with its pace.

Čítaj viac
3 wildest theories explaining $500B crypto market crash

3 wildest theories explaining $500B crypto market crash

Uverejnil používateľ | jan 21, 2022 |

The crypto market lost over $500 billion in combined market capitalization earlier Friday. The market bloodbath led to over $700 million in liquidation as top crypto assets bled heavily. Bitcoin (BTC) fell below the critical support level of $40K while Ether (ETH) also lost $3K support.At a time when crypto proponents are debating whether the crypto market has entered a bear phase, many wild theories flooded the internet to make sense of the crash. We will look at three such theories that many believe fueled the crypto market crash.U.S. Fed’s inflation measures:The consumer inflation in the United States has hit record highs, and the upcoming FOMC meeting set for 25-26 January is expected to announce new interest rates. Fed is expected to raise interest rates thrice this year with hikes going from 0.25% to as high as 1% by EOY. Many market pundits believe the growing concern around inflation added with the omicron rise has led to sell-off on Wall Street, which eventually trickled down to the crypto market.One Reddit theory suggests crypto was created to hide asset inflation as it created another “pipeline” for the U.S. dollar to pass through to inflate a different asset. The user Juicyjuicejuic wrote:“Crypto creates the perfect trading vehicle for a short time, before becoming the scapegoat for whatever crash is coming.”The user went on to add that the volatility in the crypto market is the reason behind “why bonds and stocks are crashing because everybody gambled on crypto and took money out of other assets to do so!”Bitcoin market’s growing correlation with Wall StreetMarket pundits also believe the growing correlation of Bitcoin with the equity market could have fueled the crash earlier. Because of ETFs and institutional investors, BTC has become more intertwined with the equity markets. The cryptocurrency market has been swaying in lockstep with Wall Street.Related: Bitcoin dumps to hit six-month lows near $38KRussian central bank crypto blanket ban proposalAnother theory that seems to have gained traction is a recent report from the central bank of Russia demanding a blanket ban on crypto mining and trading. As Cointelegraph reported, the Russian central bank compared Bitcoin to a Pyramid scheme and demanded an immediate ban on its use domestically. The central bank also warned crypto could pose a risk to the financial sovereignty of the nation.Russia became the third largest Bitcoin mining hub, and many believe the central bank’s demand for a blanket ban has triggered May 2021 like FUD in the market-leading to sell off.The first major crash of 2022 has set a selling spree in the crypto market, however, veteran traders continue to advocate for hodling as they claim a crash of up to 30% is not worrisome in a bull market.

Čítaj viac
Crypto taxation could deter investors, says Thai ruling party MP

Crypto taxation could deter investors, says Thai ruling party MP

Uverejnil používateľ | jan 21, 2022 |

Thailand’s Committee on Monetary Affairs, Finance, Financial Institutions and Financial Market conducted a virtual meeting to discuss various aspects of crypto taxation.The ruling party MP Watanya Wongopasi posted a summary of the discussion on her Facebook page and urged the Excise department to do their due diligence before imposing any tax on the crypto trading market.In the meeting, Paiboon Nalinthrangkurn, the chairman of the Federation of Thai Capital Market Organisations noted that a tax on stock trading and digital asset trading could decrease market liquidity by 40%. He also warned that heavy taxation would deter foreign and small investors from trading.Yutthana Srisavat, the CEO and founder of iTax proposed a corporate tax or a value-added tax instead of imposing a trading tax. He also made it clear that the decentralized nature of crypto makes it extremely difficult to gather buyer and seller information, making it near impossible to collect tax information.The Thai Excise department noted that the majority of its focus has been on taxing the stock market, and it has made little progress in terms of crypto trading taxation. However, the department assured that they are carefully studying the crypto market and the taxes will be only imposed after careful consideration.Chonladet Khemarattana, president of the Thai Fintech Association advocated for a free market to compete with other nations. He urged the government to monitor the growth of the crypto ecosystem in the short term before moving on with tax implementation.Related: Former Thai SEC chief lays out three critical issues with crypto taxationsCrypto taxation has become a hot topic in Thailand especially after the government proposed a 15% tax on crypto gains. Several current and former executives have come out to warn against the proposal, including former Thai SEC executive Tipsuda Thavaramara. As Cointelegraph reported earlier, Thai Prime Minister Prayut Chan-o-cha has instructed the revenue department to offer clarification for investors and the public on crypto taxation soon. 

Čítaj viac
Russian central bank proposes blanket ban on crypto mining and trading

Russian central bank proposes blanket ban on crypto mining and trading

Uverejnil používateľ | jan 20, 2022 |

In a report published on Thursday, The Central Bank of Russia has called for a blanket ban on domestic cryptocurrency trading and mining.The report titled “Cryptocurrencies: trends, risks, measures” compares cryptocurrencies to a Ponzi scheme and calls for a complete ban on their use throughout Russia. The authors claim that cryptocurrencies are highly volatile in nature and are being used as a tool for illegal activities. The report also warned that crypto could pose a risk to financial sovereignty and could aid people in taking money out of the national economy. The report read:“Potential financial stability risks associated with cryptocurrencies are much higher for emerging markets, including Russia.” The Russian central bank demanded a complete ban on over-the-counter (OTC) trading desks, crypto exchanges as well as peer-to-peer exchanges. The report also called for reinforcing the crypto payment ban and the introduction of strict punishment for any violations.The central bank report further proposes a complete crypto mining ban in the country, claiming that mining activities create new supply which leads to demand for other crypto services such as exchanges. Crypto mining could undermine the existing green energy agenda and also disrupt Russia’s energy supply. The official paper read:“Crypto mining creates a non-productive electricity expenditure, which undermines the energy supply of residential buildings, social infrastructure and industrial objects, as well as the environmental agenda of the Russian Federation.”Russia became the third-largest Bitcoin (BTC) mining hub following China’s crypto mining ban in May. If acted upon, the latest proposal for a blanket ban on crypto mining in the country could lead to yet another realignment on the world’s crypto mining map.According to a Bloomberg report, Russia’s Federal Security Service (FSB) was instrumental in advancing the ban, having lobbied central bank governor Elvira Nabiullina to pursue a hardline course. The report claims that the FSB is worried about the increasing number of untraceable funding to opposition parties and media via crypto.The report is framed as an invitation for public discussion, with the deadline for comments and suggestions from interested parties set at March 1, 2022.Related: Russia prioritizes CBDC ruble as overall crypto outlook seems positiveThe central bank of Russia has been skeptical of cryptocurrencies for quite some time. However, what could be seen as signs of president Vladimir Putin’s interest in and understanding of crypto led some to believe that the Russian government might choose to regulate the decentralized industry rather than ban it.

Čítaj viac
Ad restrictions won’t impact crypto demand, Binance CEO says

Ad restrictions won’t impact crypto demand, Binance CEO says

Uverejnil používateľ | jan 20, 2022 |

Binance CEO Changpeng Zhao, also known as “CZ,” claimed that the growing restrictions on crypto advertisement won’t impact the demand.During his interview with CNBC, CZ stressed that physical crypto advertisements and crypto ads, in general, have not had much impact on user growth, and it has only become common over the past few years. He said that the majority of crypto adoption comes from “word of mouth” marketing. Clampdown on crypto advertising is unlikely to have much of an effect on demand, says @binance CEO Changpeng Zhao pic.twitter.com/K5EtuWyxGz— CNBC International (@CNBCi) January 20, 2022He also added that primary advertising services such as Google and Facebook had not allowed crypto ads for the longest time. Thus, it’s clear advertisement doesn’t play a significant role in crypto adoption or demand. He went on to add that the series of regulatory clampdowns on crypto ads only shows the growing demand. CZ said:“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.”The CEO’s comments come amid the growing restrictions and slew of actions taken by various countries over the past few weeks. Singapore recently issued new guidelines for crypto companies, prohibiting crypto advertising in public spaces. The Monetary Authority of Singapore also barred crypto service providers from opening crypto ATMs. Following this ruling, several crypto ATMs in the country have shut down.United Kingdom advertisement watchdog Advertising Standards Authority also continued its crackdown on misleading crypto advertisements as it banned two ads from popular crypto trading platform Crypto.com. The Spanish government, on the other hand, is also looking to bring new regulations for crypto advertisements.Related: UK advertiser ASA continues crypto ad banning spreeRegulators have shared their concern over the misleading content of crypto advertisements, where most crypto firms are accused of highlighting big returns while downplaying the risks associated with crypto investments. Another major obstacle is the lack of clarity over the crypto regulations in the majority of the countries, which makes crypto advertisements an even bigger headache for regulators.

Čítaj viac

Získaj BONUS 8 € v Bitcoinoch

nakup bitcoin z karty

Registrácia Binance

Burza Binance

Aktuálne kurzy