South Korean Shinhan Bank completes stablecoin remittance pilot with Asian partners
The bank used the Hedera network to settle payments in South Korean, Thai and Taiwanese currencies in real-time in its second stablecoin pilot project.
Čítaj viac
Značka: Remittances
Paxos and MercadoLibre partner up to bring USDP to Mexico
The move provides PAX coin access to Mexico’s 3.1 million-plus cryptocurrency users.
Čítaj viac
Crypto could eliminate 97% of traditional remittance fees: Coinbase
U.S. consumers sending international bank transfers pay more than $12 billion annually in remittance fees alone.
Čítaj viac
Africa: The next hub for Bitcoin, crypto adoption and venture capital?
Cointelegraph’s Elisha Owusu Akyaw shares how cryptocurrency is changing the financial landscape in Africa — and the opportunities and challenges that come with it.
Čítaj viac
9 years after the first Bitcoin ATM, there are now 38,804 globally
On Oct. 29, 2013, a coffee shop in downtown Vancouver, Canada opened what is understood to be the world’s first publicly available Bitcoin (BTC) automatic teller machine (ATM) operated by Robocoin. The crypto ATM saw 348 transactions and $100,000 transacted in its first week of operation.As of Oct. 30, 2022 — nine years and one day on — Robocoin has ceased operations and the first crypto ATM has likely been removed or replaced, but crypto ATMs have continued to increase in number with 38,804 cryptocurrency ATMs in existence today, according to Coin ATM Radar.The global hub for crypto ATMs has since moved however, with the United States now housing nearly 88% of the world’s supply of crypto ATMs and taking credit for 90% of all newly installed ATMs over the past few months. In October alone, 129 of the world’s newly installed ATMs were located in the United States out of a total of 205. Canada, home to the first crypto ATM, has only seen that number creep to 566 after nine years, though it’s still placing in second at 6.6% of the total, as per Coin ATM Radar data.Meanwhile, Spain became the third-largest crypto ATM hub on Oct. 22 with its 0.6% share across 215 ATMs.A July report from Research and Markets estimates the crypto ATM space is now valued at $46.4 million, which will grow more than 10 times to $472 million by 2027, driven by remittances and increased crypto ATM installations.However, like many crypto-related products, crypto ATM installations have been challenged this year as a result of the crypto bear market. Crypto ATM installations slowed between January and May before a slight recovery between June and August, but September saw net crypto ATMs drop globally for the first time ever after 459 machines were removed from the global network.Related: How Bitcoin ATMs in Greece fare during a record-breaking tourist seasonBitcoin is still the most popular cryptocurrency transacted across crypto-enabled ATMs with nearly 100% supporting BTC transactions per Coin ATM Radar. However, other cryptos also appear to be supported across the network.Litecoin (LTC) is popular with almost 81% of ATMs supporting the crypto, and Ether (ETH) closely follows at almost 74%, Dogecoin (DOGE) sits in fourth place with just under 40% supporting the so-called memecoin.In early October U.S. authorities warned crypto ATMs were emerging as a popular method for scammers to receive value and defraud victims most often in “pig butchering” scams where the attacker poses as a potential romantic partner, gaining trust and asking the victim to send them money, or in some cases, cryptocurrency.
Čítaj viac
Why the battle for low or no transaction fees really matters
During the frenzied bull run, transaction fees were running rampant. Over on the Ethereum blockchain, they hit eye-watering highs of $196.638 back in May — rendering the network unusable for most everyday consumers.The Bitcoin blockchain suffered from a similar issue the year before, accelerating to a record-breaking $300.331. When demand is high, it’s easy for Proof-of-Work networks to get congested — prompting miners to prioritize the transactions with the highest fees.Here’s the problem: high fees undercut one of crypto’s most potent use cases — a decentralized way of offering peer-to-peer transfers. If sending funds from A to B is impractically expensive, millions of would-be users aren’t going to leverage this technology.Heavyweights in the crypto sector know this. Over the summer, Ethereum co-founder Vitalik Buterin warned that the cost of single transactions “potentially takes up people’s entire daily income” — especially in developing economies.Prior to The Merge, Ethereum transactions typically cost between $1 and $20 — and he argued that this simply isn’t good enough for billions of people around the world. Typical daily take home pay stands at $16 in Mongolia, and $4 in Zambia.Bear markets switch focus from growth to operational improvements — and now, blockchain developers are making a concerted effort to bring costs down. This can help crypto achieve its full potential — especially in vital use cases such as remittances.Some of the solutions that have been put forward recently include rollups, which bundle transactions together and settle them outside of a Layer 1 network. Not only is this less expensive, but it can also be faster — with data sent back to the mainnet later on.And just like trying to shove even more clothes into a suitcase, much more emphasis is now being placed on data compression too — ensuring that each transaction takes up a lot less space. This, when coupled with concepts such as sharding, are incredibly encouraging.But trading platforms — which play a crucial role in interacting with crypto enthusiasts directly — also have a role to play here. Facilitating zero-fee transfers can help deliver an experience all consumers deserve, one where they can move their digital assets without giving a single thought as to how much it will cost.Making things intuitiveHitBTC is one of the exchanges that is driving forward transactions that incur zero fees. The trading platform offers an intuitive, user-friendly wallet that’s available for Android and iOS devices — providing a simple and powerful on-ramp for those making the switch from fiat.A particularly new development allows HitBTC users to send crypto to their friends, family and business associates for free — provided they also have an account on this platform. This could be a game changer. Data from the World Bank shows that the average cost of sending $200 across borders stood at 6% in the fourth quarter of 2021. And in countries that really rely on foreign workers sending money home to their loved ones, $12 is a lot to lose.Zero-fee transfers really have the potential to change the game — opening up financial services to all while saving consumers billions of dollars in the process. Plus, when crypto is being bought or sold, HitBTC claims to offer some of the lowest fees in the market today.But this is just one piece of the puzzle, and this exchange says even more needs to be done. Demystifying cryptoMany crypto enthusiasts remember the first time they tried to send Bitcoin from one address to another. Confronted with a wallet represented by a long string of letters and numbers, there’s so much pressure to avoid typos — amid fears the crypto could be lost forever.But it doesn’t have to be this way. With Web3, we’re already seeing human-readable addresses gain popularity, with snappy domains such as .eth and .crypto. And while this is an encouraging development, HitBTC believes there should be other options too. To help reduce the inconvenience associated with sending funds, HitBTC offers its customers an opportunity to transfer digital assets to each other by email, a user ID, or using anonymous links. Irrespective of whether someone prioritizes privacy or simplicity, there’s an option to suit everybody.HitBTC’s straightforward approach has also been reinforced by an elegant interface for send and receive screens that enables the process to be completed in a couple of taps.Crypto can often be incredibly daunting for people who aren’t technically savvy, but HitBTC proves that it doesn’t have to be like this. And when coupled with the advent of zero-fee transfers, it’s tackling the pain points that stand in the way of mass adoption.Overall, HitBTC’s crypto wallet aims to be a one-stop shop for beginners and experts alike. Assets can be secured with two-factor authentication, biometrics or Face ID, and managed across more than one device. Innovative measures are also used to shield funds from fraudsters, and a dedicated customer support team is always on hand to offer help if access to an account is lost in an emergency.Even more useful features are on the horizon, and it’s all part of an ambitious quest to make crypto far less scary for newcomers… and much more practical for the veterans.Material is provided in partnership with HitBTCDisclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.
Čítaj viac
Western Union may be planning to expand its digital offerings far beyond remittances
Western Union may be preparing to offer crypto-related services, judging from trademark applications filed by the company last week. This is the latest of several attempts the company has made to enter the cryptoverse. So far, it has had limited success.Western Union filed for three trademarks on Oct. 18. According to trademark attorney Mike Kondoudis, activities covered by the applications include managing wallets; exchanging digital assets and commodities derivatives; issuing tokens of value and brokerage and insurance services.Western Union is a major provider of cross-border remittance services, and it showed its interest and uncertainty in cryptocurrency early. It partnered with Ripple to settle payments of remittances in 2015, but that partnership remained in the test phase three years later and Western Union announced that it was not adding crypto transfer to its services in the foreseeable future. #WesternUnion has filed 3 trademark applications claiming plans for▶️ Financial + Banking + Insurance ▶️ Virtual currency exchange + transfer▶️ Commodity and Crypto trading + brokerage▶️ Issuing tokens of value…and much more#Web3 #Metaverse #Cryptocurrency #NFT #DeFi pic.twitter.com/YvKysvj3mq— Mike Kondoudis (@KondoudisLaw) October 25, 2022Western Union did, however, continue to investigate and engage with electronic wallets. It partnered with blockchain platform Coins.ph to enhance its services to the Philippines with technical support from Thunes. The remittance market is becoming more competitive. Coinbase targeted Mexico, the world’s second-largest remittance market, in February with a service that allowed users to send U.S. dollars and withdraw Mexican pesos. Several other companies have entered the Mexican market this year as well, and a number of financial inclusion solutions are also offering alternatives to traditional remittance providers. Related: Crypto.com to roll out Google Pay integration as Big Tech continues to embrace cryptoNow Western Union seems to be positioning itself to offer remittance services and more on the crypto market, such as a digital assets exchange and insurance, and it might issue its own token. Western Union is still entering a crowded and competitive field, where companies such as PayPal and MasterCard have also recently opened up shop.
Čítaj viac
Remittances drive ‘uneven, but swift’ crypto adoption in Latin America
Remittance payments, fiat fears, and profit-chasing have been the three most significant drivers of crypto adoption in Latin America, according to a new report. The seventh-largest crypto market in the world saw the value of cryptocurrencies received by individuals rocket 40% between July 2021 to June 2022, reaching $562 billion, according to an Oct. 20 report from Chainalysis. Part of the surge was attributed to remittances, with the region’s overall remittance market estimated to have reached $150 billion in 2022. Chainalysis noted that crypto-based service adoption was “uneven, but swift.”The firm pointed to one Mexican exchange operating in the “world’s largest crypto remittance corridor” which processed over $1 billion in remittances between Mexico and the United States in the year to June 2022 alone.It marked an increase of 400% year-on-year and accounted for 4% of the country’s remittance market. However, the region’s soaring inflation rates have also played a huge part in crypto adoption, according to the analytics firm, particularly in the adoption of U.S. dollar-pegged stablecoins.“Stablecoins – cryptocurrencies that are designed to stay pegged to the price of fiat currencies like USD – are a favorite in the most inflation-ravaged countries in the region,” explained the firm. The region has been battling with staggeringly high inflation rates, with an estimate from the International Monetary Fund revealing that inflation across the largest five Latin American countries reached a 25-year high in August to 12.1%. This has led to regular consumers, attempting to protect themselves from their plummeting national currencies, to take and hold stablecoins in order to make their everyday purchases. The report cited a June Mastercard survey that found over a third of consumers already use stablecoins to make everyday purchases, while Chainalysis noted that citizens from Venezuela, Argentina, and Brazil were most likely to use stablecoins for small retail transactions (under $1,000).Venezuela in particular has seen its national fiat currency the bolívar depreciate by over 100,000% since December 2014, the firm added. Argentina and Brazil also saw significant shares of stablecoins used for sub $1,000 transactions. Source: ChainalysisInterestingly, the report found that citizens in the larger and more developed Latin American economies were also likely to adopt cryptocurrencies as a means of profit. Related: Latin America is ready for crypto — Just integrate it with their payment systemsChileans were the most involved in DeFi, with over 45% of all crypto transaction volume taking place on DeFi platforms followed by Brazil at just over 30%, Brazil was the number one country in the region for crypto value received closing in on $150 billion.“Latin America’s more DeFi-centric crypto markets are not unlike Western Europe’s or North America’s, where market participants are embracing cutting edge, returns-focused crypto platforms moreso than savings-centric centralized services,” Chainalysis explained.
Čítaj viac
Why crypto remittance companies are flocking to Mexico
Mexico is the second-largest recipient of remittances in the world, according to 2021 World Bank statistics. Remittances to the nation jumped to a record $5.3 billion in July, which is a 16.5% increase year-over-year compared to the same period last year. The steady growth presents myriad opportunities for fintech companies.Not surprisingly, droves of crypto companies are setting up shop in Mexico to claim a share of the burgeoning remittance market.Over the past year alone, about half a dozen crypto giants, including Coinbase, have set up operations in the country.In February, Coinbase unveiled a crypto transfer service tailored to United States-based clients looking to send crypto remittances to Mexico. The product enabled recipients in Mexico to withdraw their money in pesos.Other companies have since joined the foray. In August, the Malaysia-based Belfrics digital currency exchange announced plans to open crypto transfer operations in Mexico. According to the published communique, the firm will start by launching blockchain wallet and remittance service solutions.Another notable company that is jostling for a share of the Mexican crypto remittance market is Tether. In May, the crypto company launched the MXNT stablecoin, which is pegged to the Mexican peso. According to the enterprise, the collateralized digital currency will help customers to navigate volatility and use cryptocurrencies as a store of value. Besides the new entrants, local Mexican crypto companies such as Bitso, which is one of the largest crypto exchanges in the Latin American nation, are already making moves to enhance their reach in an increasingly competitive market.In November 2021, the Mexican firm established an alliance with U.S.-based Circle Solutions. The collaboration allowed the agency to use Circle’s payment system to facilitate U.S.-to-Mexico crypto remittances.Cointelegraph had the opportunity to speak with Eduardo Cruz, head of business operations and enterprise solutions at Bitso, about the factors driving the crypto remittance trend in Mexico. He cited high bank transaction costs, slow settlement times and the lack of access to banking facilities as some of the factors pushing the masses toward crypto remittances. He also highlighted recent alliances that have helped Mexican crypto companies bring crypto remittance services closer to nationals around the world, thereby boosting their adoption. “For example, Bitso’s clients such as Africhange, which recently integrated Canada–Mexico crypto-powered remittance services to Bitso, and Everest, which enables remittances from the United States, Europe and Singapore into Mexico, are offering a cheaper and faster way to send money to Mexico,” he said.Factors driving the Mexican crypto remittance sectorOne of the biggest factors driving the Mexican crypto remittance sector today is the huge Mexican population residing in the diaspora. Presently, the U.S. and Canada have the highest number of Mexican immigrants.According to data released by the U.S. Census Bureau in 2020, there are approximately 62.1 million Hispanic people residing in the U.S. today, with Mexicans comprising 61.6% of this population.Going by 2021 numbers, money sent to Mexico from the U.S. accounted for about 94.9% of all remittances, while Mexicans residing in Canada sent $231 million in the second quarter of 2022.In a nutshell, the rising number of Mexicans migrating to the U.S. and Canada is pushing remittances to new levels, and the high demand is spilling over to the crypto payments industry.The decline of the Mexican peso and the emergence of a strong dollar have also contributed to the spike in remittances over the past couple of years.Recent: Smart contract-enabled insurance holds promise, but can it be scaled?This phenomenon has occurred in previous crises, such as the 2008 financial crisis, which plunged the Mexican economy into turmoil. In times like this, Mexican institutions and investors usually tend to seek refuge in the greenback, which typically has a higher buying power.In March 2020, when coronavirus lockdowns began, the U.S. dollar’s purchasing power jumped by approximately 30% in Mexico. At the same time, the average remittance transfer to Mexico increased from $315 to $343.Today, the availability of dollar-pegged cryptocurrencies allows Mexicans living in the diaspora to leverage the heightened buying power of the USD to make investments and purchases in their home country, hence the higher remittance rates.Greater convenienceBlockchain technology eliminates third-party mediators from transaction processes, which leads to lower transaction costs and less time used when undertaking remittance transactions.Cointelegraph caught up with Structure.fi president and co-founder Bryan Hernandez to discuss the impact of these factors on the Mexican remittance market. His company operates a mobile trading platform that gives investors exposure to traditional and crypto financial markets:“Crypto businesses see a huge opportunity here to streamline (conventional money transfer) processes using blockchain technology. Using crypto, cross-border payments can be made directly with little or no fees instantaneously.” In Mexico, many financial institutions are also located far away from rural areas, and this makes it hard for the locals to access financial services. Crypto remittance solutions are beginning to close this gap by enabling citizens in such areas to access their money without having to travel long distances.Moreover, they are able to serve the unbanked. As things stand, over 50% of Mexicans lack a bank account. This makes crypto remittance solutions convenient for citizens in this demographic, as all that’s needed to receive funds is a crypto wallet address.Another reason why more Mexicans are embracing the crypto remittance fad is their distrust of banks. Mexicans living in the diaspora are sometimes subjected to redlining practices, and this has led to more people using crypto remittance solutions.Dmitry Ivanov, chief marketing officer at CoinsPaid — a crypto payments firm — told Cointelegraph that the wider use of crypto remittance networks in Mexico was bound to boost adoption overall.“The clear advantage of digital currencies is what is paving the way for their broad-based adoption in the country and the Latin American world as a whole,” he said, adding:“The benefits derived from digital currencies have made Mexicans see how exploitative banks have been thus far with their charges, and the general comparative inefficiency has made them distrust traditional financial institutions in general. With a little more regulatory push, the country’s remittance inflow may be dominated by cryptocurrencies.”A few hurdlesBlockchain remittance solutions provide a raft of important benefits to Mexican users, such as fast transfers and lower transaction fees.However, they have to overcome some fundamental challenges to dominate the cross-border payments market. The technical nature of crypto platforms, and limited local currency withdrawal options, for example, present some unique challenges that are likely to slow down adoption.Mexican citizens also still prefer using cash to make payments. According to the 2021 McKinsey Global Payments Report, Mexico was ranked top among countries projected to have high cash usage over the next couple of years. Recent: To HODL or have kids? The IVF Bitcoin Babies paid for with BTC profitsThe research report forecasts that consumer cash payments will account for about 81.5% of all transactions in Mexico by 2025.This presents a major hurdle for crypto adoption in the country, despite rising crypto remittance figures.Going forward, it will be interesting to see how the tech-savvy and crypto evangelists navigate the challenges facing adoption and take advantage of the momentum provided by the growing remittances industry.
Čítaj viac
Vietnam’s crypto adoption: Factors driving growth in Southeast Asia
The Southeast Asian nation of Vietnam now ranks among the top nations adopting cryptocurrencies. Indeed, the country has ranked first on Chainalysis’ Global Crypto Adoption Index for two years in a row.Chainalysis’ research methodology took into account population-adjusted adoption in crypto platforms ranging from centralized exchanges to peer-to-peer (P2P) payment networks. Web traffic to major crypto networks was analyzed to determine countries with the highest interest and adoption percentages.That said, Vietnam’s high adoption rate is a puzzling phenomenon, begging the question: Why is crypto adoption so high in the country?No cryptocurrency taxesThere are numerous reasons why the crypto adoption rate in Vietnam is so high and one of them is that, unlike in the United States and other major jurisdictions where cryptocurrency holdings are taxed, there are no crypto taxes in Vietnam. Right now, the Vietnamese government does not even recognize cryptocurrencies as legal tender. While the nation’s tax authorities have shown interest in taxing cryptocurrencies, they lack the mandate to designate them as taxable assets. As such, Vietnamese law is largely silent when it comes to crypto taxation. Consequently, financial institutions in the country are barred from handling them. However, Vietnamese citizens are allowed to possess and trade crypto.The lack of crypto taxes makes digital currencies ideal as investment instruments, hence the rise in adoption. The trade-off is that Vietnamese law doesn’t protect crypto users in the event of scams or losses. As such, cryptocurrencies cannot be used legally in trade relationships.However, the nation’s financial regulatory agencies are working to come up with elaborate crypto usage guidelines. This is following a July 2021 directive issued by Prime Minister Phạm Minh Chính in which he asked the State Bank of Vietnam to explore the benefits and downsides of digital currencies with a view to draft regulations. The institution is likely to come up with a raft of measures that include tax and user protection guidelines.Cointelegraph had the chance to speak with Gracy Chen, managing director of the Bitget cryptocurrency exchange, regarding Vietnam’s regulatory landscape and the developing situation. According to Chen, clear and robust regulations would allow institutional inventors in the country to start dealing in crypto, and this would be a big win for the industry: “When the regulation actually comes out, it may lead to a short-term impact on local fiat exchange trading, but in the longer term, clear regulation may encourage broader adoption and lay the groundwork for increased retail and institutional engagement since a better-regulated market will provide greater protection and increase trust of investors. So overall, the pros outweigh the cons.” Vietnam has a huge unbanked populationMany Vietnamese have limited access to standard financial services. According to a 2021 study carried out by Statista, the country ranks second among the top 10 unbanked nations. The report highlights that about 69% of the citizenry lacks access to typical banking services.World Bank estimates indicate that just over 61% of the country’s population resides in rural areas, where access to modern banking services is limited. This void is rapidly being filled by cryptocurrency networks. Novel revolutionary blockchain concepts such as decentralized finance (DeFi) are also gaining traction among Vietnamese crypto investors who wish to obtain credit for crypto investment purposes. DeFi is a hypernym for blockchain-based financial networks that provide services similar to those offered by banks. DeFi platforms allow users to earn interest on their money, lend and borrow funds, as well as trade in crypto derivatives. They also enable investors to safeguard their assets using DeFi insurance and don’t require paperwork. This makes them convenient for unbanked Vietnamese, especially those who wish to scale their crypto investments and earn passive income. Notably, Vietnam is ranked second among nations with the highest DeFi usage in the world, according to the 2021 Chainalysis Global DeFi Adoption Index report. RemittancesIn 2021, Vietnamese nationals living in the diaspora sent home over $18 billion in remittances, setting a new record, which made the country the eighth biggest remittance beneficiary in the world. This was a 3% increase from the $17.2 billion recorded in 2020.For Vietnamese who regularly send money to their families in Vietnam, transfer fees are often exorbitant. The surcharges usually include administrative fees and exchange rates. According to World Bank statistics, remittance costs to Vietnam average about 7% as of 2020.Exorbitant fees, in addition to the unbanked population’s lack of access to money transfer services, have made cryptocurrency transfers an appealing option for Vietnamese living abroad to help support their families back home. While blockchains do have transactions fees, they often pale in comparison to those of remittance networks, and furthermore are P2P and don’t rely on a middleman to complete the transaction.The rising popularity of GameFi Blockchain games with financial incentives, often referred to as GameFi, use innovative economic models that allow users to earn rewards while playing. The rewards are usually in the form of nonfungible tokens (NFTs) and cryptocurrencies.As cryptocurrencies are at the heart of GameFi environments, many gamers learn how they work as part of the gameplay, providing another avenue for adoption.According to Chainplay’s State of GameFi 2022 survey in August, 75% of GameFi crypto investors said that they started investing in digital currencies after joining GameFi platforms. GameFi, especially play-to-earn (P2E) games, are immensely popular in Vietnam and have contributed greatly to cryptocurrency adoption in the country.According to a 2021 research report published by data aggregation service Finder, Vietnam ranks sixth on the list of countries with the highest percentage of P2E gamers. According to the survey report, 23% of Vietnamese participants said that they had, at some point, played P2E games.Today, numerous GameFi startups have set up shop in the country due to the pervading NFT gaming culture, and this is, in turn, driving crypto adoption. The developers include Ancient8, Sipher and Summoners Arena.Notably, Axie Infinity, one of the most popular play-to-earn games in the world, has its roots in Vietnam.Chen said that the relationship between GameFi and crypto adoption is part of the reason why both sectors are thriving:“According to data from Google, Sensor Tower, and Data.ai, Vietnam ranks first in Southeast Asia in producing applications and games in stores like Apple Store and Google Play. Meanwhile, the new huge crypto adoption all over the world last year was in part due to GameFi. These two factors are significantly connected, creating massive crypto adoption in Vietnam.” Cryptocurrencies as a hedge against inflationVietnamese citizens have, throughout history, preferred using other national currencies such as the United States dollar during times of economic turmoil and hyperinflation. In recent years, Vietnamese people have also been accumulating assets such as gold to hedge against inflation.At some point in the past decade, the Vietnamese citizens held as much as 400 tons of gold.Of course, the emergence of cryptocurrencies has also led to more Vietnamese citizens using them to hedge against inflation instead of tangible assets such as gold.While the Vietnamese central bank has warned individuals and institutions against dealing in virtual currencies due to their mercurial nature, dwindling faith in the Vietnamese dong has led to more Vietnamese investors turning to digital currencies. According to data derived from Statista, Bitcoin (BTC), which is widely used by investors as a hedge against inflation, is currently the most popular cryptocurrency in the country. The report reveals that search interest in the country for the prime cryptocurrency stands at about 84.5% relative to other cryptocurrencies.Crypto adoption in Vietnam is set to persist as more Vietnamese discover the convenience and possibilities of digital assets. Extensive regulations, however, appear to be a long way off. The State Bank of Vietnam has until 2023 to study the pros and cons of cryptocurrencies and come up with policy recommendations.
Čítaj viac
What the Taliban crackdown means for crypto's future in Afghanistan
With the rise of the Taliban last year in August, Afghanistan faced global sanctions that led to many international organizations and money transaction services halting operations in the country. This made room for digital currencies and stablecoins to be widely used, at least to send or receive remittances.However, the Taliban government has recently banned cryptocurrencies and arrested 16 local exchangers in the Northwestern city of Herat in the past week, according to the provincial news website ATN-News. According to the report, the exchanges were initially given a grace period to comply with the government’s regulations but were ultimately shut down after failing to do so. The Afghan government has now asked locals to refrain from using digital assets and has warned them of the risks associated with such activities.However, people familiar with the matter, those who want to stay anonymous due to security reasons, have told Cointelegraph that “no previous announcement or warnings were given.”“Da Afghanistan Bank (central bank) stated in a letter that digital currency trading has caused lots of problems and is scamming people, therefore they should be closed. We acted and arrested all the exchangers involved in the business and closed their shops,” the head of the counter-crime unit of Herat police, Sayed Shah Sa’adat, told ATN-News.People familiar with the matter believe there were no crypto-related scams involved in the government’s “stupid” decision. “We mostly used the Binance crypto exchange and a wallet to trade, send or receive assets,” they added. “Right now, we don’t have standard banks or monetary services, and the Taliban banned our only hope.”In June, the Taliban-led central bank of Afghanistan banned online forex trading in the country. A spokesman told Bloomberg that the bank views forex trade as being both illegal and fraudulent, saying “there is no instruction in Islamic law to approve it.” After the Taliban regained power in Afghanistan, local residents’ finances worsened as billions of dollars in foreign aid were cut off and their overseas assets were frozen under United States sanctions, per Bloomberg.Why did the Taliban ban crypto?According to the ATN-News report, the main reasons for the ban are the volatile nature of cryptocurrencies and assets like the U.S. dollar leaving the country since crypto exchanges are not based in Afghanistan. Another reason noted in the report is that digital currencies are new and “the people are not familiar with them.”The head of the fiat exchangers’ union Ghulam Mohammad Suhrabi also claimed that crypto was used to scam people. However, people familiar with the matter do not know of any crypto-related crime or scam, and Suhrabi also didn’t provide any specific data.Recent: Blockchain audits: The steps to ensure a network is secureSome believe that the only reason for the ban is the decentralized nature of cryptocurrencies and the underlying blockchain technology. “They banned it because they cannot control it,” a trader with over six years of crypto experience told Cointelegraph, stating: “The government wants to see, control and manipulate everything in the country. Crypto is volatile, I agree, but everyone who uses it must know that. We also have stablecoins like Tether, USD Coin and many more for the people who just want to send or receive remittances to/from other countries.”Cointelegraph’s sources further stated that the Taliban have also told traders and crypto-to-fiat exchangers that cryptocurrency use is like “gambling” and call it “Haram,” which means forbidden under Islamic law. They added that the government wants people to use local banks to transfer money, while “most of the local monetary services are limited and do not allow us to withdraw all of our money at once.”“We can only get around 20,000 Afghanis (roughly $220) per week from the local banks that one should stay in line for hours sometimes,” a crypto user who gets money from his brother from Germany told Cointelegraph. “In addition to all the difficulties in withdrawing money from banks, another problem is the expensive transaction rates that we are just trying to avoid.”He added that there are always a bunch of hidden fees with using services like SWIFT, Western Union, MoneyGram and the local Hawala system. The crypto user said that the transaction rates sometimes go up to 20%.Risk of crypto in AfghanistanAfter Afghanistan was hit by a wave of sanctions that limited its reach to international banking and trade, many were looking for an alternative to getting money from their family and friends abroad. The situation made room for cryptocurrencies, as the local money transfer services were either banned or very expensive.Furthermore, popular payment transfer companies like PayPal and Venmo are not supported by banks in Afghanistan, which limits the financial services that these establishments provide. In addition, it is difficult to open a bank account due to the number of requirements one must meet, such as providing a house deed and working statement.“We could receive thousands of dollars in crypto assets from our families without worrying about the transaction fees or the complexity of the [digital] exchanges,” locals said. “Using apps like Binance or some [crypto] wallets is super easy, that we even have some illiterate people who can now easily send or receive cryptocurrencies.”Friday Mosque (Jumah Mosque) in Herat, Afghanistan. Source: Koldo Hormaza.According to Google Trends data, the interest in the search terms “Bitcoin,” “crypto” and “cryptocurrency” has risen more than 100%, especially in Herat, Kandahar, Kabul, Nangarhar and Balkh provinces. Furthermore, Afghanistan was ranked 20th among 154 countries in “The 2021 Global Crypto Adoption Index” by Chainalysis in 2021. This is a positive indication that the people of Afghanistan are willing to invest and use cryptocurrencies in their daily lives, one individual told Cointelegraph.“Crypto is the only way I can get paid online because we do not have access to a service like PayPal,” said an online worker. “I receive my salary with cryptocurrencies and this is the way I put food on the table for my family of nine, but I’m really hopeless now.”Recent: Why interoperability is the key to blockchain technology’s mass adoptionOne source added that the Taliban might be trying to create a central bank digital currency (CBDC) and could have plans to use blockchain technology. However, most traders believe that there is no need for a CBDC when cryptocurrencies offer what people need. The Taliban have not yet announced any plans related to CBDCs.“Just imagine what a frictionless, global digital payments system with appropriate controls for illicit finance could do for people in places like Afghanistan — if relatives abroad could easily send remittances, or if NGOs could pay their staff halfway around the world with the click of a button on a smartphone,” the U.S. Deputy Secretary of the Treasury Wally Adeyemo said at Consensus 2022.Adeyemo pointed out the weakness of local banks in Afghanistan in providing enough cash for “ordinary people.” While the situation in the country is becoming worse every day, he believes that “it is critical that we balance both sides of this proverbial digital coin, the risks and the opportunities.”
Čítaj viac
FOMO Pay taps Ripple's liquidity solution for treasury management
Singapore-based institutional digital payment solution provider FOMO Pay has become the latest fintech firm to integrate Ripple’s liquidity solution called on-demand liquidity (ODL).FOMO Pay would use the popular crypto enterprise technology to improve its cross-border treasury settlements. Earlier, the firm used the traditional payment system for cross-border settlement of EUR and USD trades, which took up to two days. However, with ODL integration, the firm aims to achieve an instant settlement with very low transaction costs.Louis Liu, Founder and CEO of FOMO Pay said:“We are excited to partner with Ripple to leverage On-Demand Liquidity for treasury management, which allows us to achieve affordable and instant settlement in EUR and USD globally.” Ripple’s ODL service has gained a lot of popularity in the private banking and payment sector. The enterprise solution uses XRP as a bridge between two currencies, eliminating pre-funding of destination accounts and reducing operational costs. The tech has proven a great success in Asia, where cross-border transactions are among the highest.Ripple didn’t respond to requests for comments from Cointelegraph at the time of publishing.Ripple aims to make headway in the treasury settlement market that sees over $3.5 billion in annual expenditure to manage liquidity crises. With ODL, liquidity is always available in the form of XRP.Related: After 8 years dumping billions of XRP, Jed McCaleb’s stack runs out in weeksJapan’s SBI Remi integrated the ODL solution to transfer money from Japan to the Philippines last year. Some other major firms that have integrated Ripple ODL services include Pyypl, Novatti, Tranglo, iRemit, FlashFX and Azimo.Ripple’s payment technology has been key to its success despite the long-running lawsuit in the U.S over the unregistered sale of XRP. In the latest development of the case, the U.S. Securities and Exchange Commission (SEC) attempted to block Ripple (XRP) holders from aiding in Ripple’s defense and prohibit attorney John E. Deaton from any further participation in proceedings.The SEC claims #XRP itself is a security and anyone who sells it is violating Section 5 of the Securities Act. The SEC claims @Ripple @bgarlinghouse & @chrislarsensf “enriched” themselves at the expense of investors and it is seeking $1.3B in disgorgement from these defendants. https://t.co/9nJ1iNroth— John E Deaton (208K Followers Beware Imposters) (@JohnEDeaton1) July 18, 2022The key executives of Ripple, including CEO Brad Garlighouse, have maintained that they are confident of a positive outcome of the lawsuit. However, the blockchain firm has seen a great demand and adoption for its crypto-based cross-border remittance and liquidity solution.
Čítaj viac
Získaj BONUS 8 € v Bitcoinoch
Registrácia Binance
