roadrunner

Uday Kotak, the CEO of Kotak Mahindra Bank, a financial institution based in India, recently expressed his view on the dominance of the U.S. dollar in global financial markets. Kotak stated that the U.S. dollar has “disproportionate power” as a reserve currency, retracting his previous statement in which he referred to the currency as the “biggest financial terrorist in the world.” Kotak explained that several countries were exploring alternative reserve currencies to reduce their dependence on the U.S. dollar. Top Indian Banker Refers to the Dollar as ‘Biggest Financial Terrorist’ in the World Uday Kotak, CEO of Kotak Mahindra Bank, an institution that registered more than $8.5 billion in revenue in 2023, referred to the subordination that world markets have to the U.S. dollar hegemony. In a panel at the ET Corporate Excellence Awards, an event of the Indian news conglomerate Times network, Kotak stated that the American currency was “the biggest financial terrorist in the world,” criticizing the power it had as a reserve currency. Explaining his stance, Kotak declared: All our money is in nostro accounts and somebody in the U.S. can say- you cannot withdraw it from tomorrow morning- and you are stuck. That is the power of the reserve currency. This dependence is what is driving several nations of the world to seek an alternative reserve currency, Kotak remarked, stating this was a “crucial time in world history.” However, Kotak later corrected these statements on social media, explaining he wanted to make reference to the ‘disproportionate power’ the currency had in world markets. He explained: In a recent discussion on US dollar I inadvertently used words “financial terrorist” which I would like to correct. What I meant was that a reserve currency has disproportionate power, whether it is nostro account, 500 bps rate increase, or emerging countries holding dollars for liquidity. The Run to Have the Next Reserve Currency Global geopolitics and the rise of sanctions against Russia have changed the landscape of how payments are being settled and which currencies are being used. China has recently made advancements in profiling the Chinese yuan as a friendly token for international markets, with Russia also promoting it. On the different countries that might become holders of the next reserve currency, Kotak stated: “I don’t think Europe can, because it is the disunited states of Europe. I don’t think UK or Japan have the heft to be taking that position, though both the British pound and the yen are free currencies. China, I think, has a major issue of trust with many many countries around the world. However, Kotal believes that India can have a shot at making the Indian rupee the next U.S. currency, but it will take ten years, during which the country will have to build strong institutions and a framework behind it. India has already opened its doors to other countries to settle cross borders payments with the Indian rupee, as part of its most recent foreign trade policy guidance, with the objective of allowing countries facing a dollar crunch to keep trading goods. What do you think about Uday Kotak’s opinion on the current role of the U.S. dollar as a reserve currency? Tell us in the comments section below. View the full article

BRICS nations can lead efforts to abandon the U.S. dollar in international settlements, according to President Bashar Assad of Syria. At a meeting with China’s top diplomat for the region, the leader of the war-torn Middle Eastern country called for using the Chinese yuan for cross-border trade. Economic Clash With West Requires Discarding Dollar, BRICS Leadership, Syrian President Says Confrontation with the United States and the West in general has been taking place mainly in the economic field and that makes it increasingly necessary to ditch the U.S. dollar as a currency for global transactions, President Bashar Assad of Syria was quoted as saying by Sana, the Syrian state-controlled news agency. Assad emphasized that the BRICS bloc, through the adoption of the Chinese yuan for trade transactions between nations, can play a leading role in that regard. He made the comments during a meeting with the Chinese government’s Special Envoy for the Middle East, Zhai Jun, whom he received on Saturday. The Syrian leader also praised the Chinese mediation that resulted in the rapprochement between Saudi Arabia and Iran, both of which are applying for membership in BRICS. He believes the improvement of their relations will positively impact the stability of the whole region. According to Assad, the entire world today needs the Chinese presence, politically and economically, to rebalance the global situation. The BRICS alliance constitutes a strong international space capable of creating an international multipolar order, he added. His comments come after his foreign minister recently accused the United States of imposing sanctions on Syria in order to steal its assets and keep it under its hegemony. The Chinese official assured Bashar Assad that Beijing will continue to support Damascus in international forums and “it’s battle against hegemony, terrorism and external interference.” Zhai Jun also said that China backs the rapprochement between Syria and the other Arab countries. Chinese diplomacy has been quite active in the region and beyond in an attempt to expand the influence of the People’s Republic on the global stage. China initiated talks about the potential enlargement of BRICS and has been trying to promote the use of the yuan in international trade while supporting efforts to reduce dependence on the U.S. currency. Do you think China will facilitate the accession of Middle Eastern countries to BRICS? Tell us in the comments section below. View the full article

Rich Dad Poor Dad author Robert Kiyosaki says the Fed is wiping out regional banks by supporting only big banks, like JPMorgan Chase. Stating that the Fed “is criminal,” he warned that its actions “will bring down” the United States. Robert Kiyosaki Says the Fed Is Criminal The author of Rich Dad Poor Dad, Robert Kiyosaki, warned in a series of tweets this week that the Fed is wiping out regional banks by supporting only the big banks, such as JPMorgan Chase. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries. Kiyosaki tweeted Wednesday: “WTF. What The Fed? Why is Fed destroying regional banks across America? Regional banks are [the] heart and soul of [the] economy. Fed via the Repo Market [is] killing regional banks. Is this intentional? Is a depression intentional? WTF is Fed up to? Get $ out of regionals.” The renowned author followed up with a tweet Thursday, stating that even online retail giant Amazon is affected by the Fed’s actions. “Without credit flowing, Amazon is cutting 18,000 jobs,” he stressed, adding: The ripple effect from WTFed will bring down USA … WTFed wiping out regional banks. In a separate tweet, Kiyosaki cautioned that by supporting only the big banks, such as JPMorgan Chase, the Fed is wiping out regional banks. Calling the Fed’s action “Cruel,” Kiyosaki reiterated his previous statement that regional banks are the heart and soul of America. Calling the Fed “criminal,” he then urged his 2.4 million Twitter followers to support small banks and small businesses. On Friday, Kiyosaki warned in another tweet about President Joe Biden’s central bank digital currency (CBDC) and went on to recommend his customary choices of investing in additional gold, silver, and bitcoin. He wrote: In his book 1984, George Orwell warned ‘Big Brother is watching.’ Biden’s CBDC is ‘Big Brother.’ Buy more gold, silver, and bitcoin. In a recent episode of his Rich Dad Show, Kiyosaki discussed economic chaos, war breaking out, and rising starvation. Earlier this month, he said, “America is dying,” warning about hyperinflation and the death of the U.S. dollar. Do you think the Fed is criminal like Rich Dad Poor Dad author Robert Kiyosaki said? Do you think regional banks are being wiped out? Let us know in the comments section below. View the full article

The chairman of the State Duma Committee on the Financial Market says that an agreement on the BRICS currency can be reached in 2023 as BRICS nations ramp up their de-dollarization efforts to shift away from U.S. dollar reliance. “By linking its economy and currency to politics, the U.S. is practically undermining the foundations of its dominance,” said the Russian official. Agreement on BRICS Currency Could Be Reached in 2023, Says Russian Official Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, discussed BRICS currency and the de-dollarization trend on Wednesday at the press center of Parliamentary Newspaper, the publication of the Federal Assembly of the Russian Federation. Aksakov expects the share of the U.S. dollar in international trade to decline, noting that Americans continuing to destroy the value of the dollar with their own hands shows the whole world that the USD is being used for political purposes. He said: By linking its economy and currency to politics, the U.S. is practically undermining the foundations of its dominance. I am sure that the share of the dollar in world trade will steadily decline. The Russian official added that now there is a search for some kind of collective currencies, emphasizing that a discussion on this topic is already on the agenda of the BRICS countries (Brazil, Russia, India, China, and South Africa). Aksakov further stated that while the negotiations are at an early stage, an agreement can be reached in 2023. The BRICS nations have been ramping up their de-dollarization efforts and are currently working to create a common currency that will reduce their reliance on the U.S. dollar. State Duma Deputy Chairman Alexander Babakov said last month that BRICS currency is expected to be discussed at the next leaders’ summit in August. The economic bloc is also pushing to expand its global influence. A Russian official said this week that Russia is actively discussing BRICS expansion with member countries. So far, 19 nations have either applied to join the group or have expressed interest to join. However, multiple people have warned that a BRICS currency will erode the U.S. dollar’s dominance. Do you think the BRICS currency will undermine the U.S. dollar’s dominance? Let us know in the comments section below. View the full article

Pepe (PEPE), the meme coin featuring the popular character Pepe the Frog, has experienced a significant surge in value in the past week, rising by 152.9% against the U.S. dollar. Recent statistics indicate that PEPE’s market capitalization has surged from $141 million on April 22 to a current valuation of $303 million. PEPE Jumps 99% in 24 Hours, Now Fifth-Largest Meme Token by Market Cap On April 30, 2023, the top meme coin crypto assets by market capitalization are worth $19.11 billion. Over the past 24 hours, the valuation of all meme tokens has risen 1.6%. However, only two out of the top five meme coins by market capitalization have seen gains. The newly launched cryptocurrency, pepe (PEPE), is leading the pack with triple-digit gains. Data collected from coingecko.com shows that over the last seven days, PEPE has risen 152.9%, with most of the gains coming from the last 24 hours as the token jumped 99% higher on Sunday. PEPEUSDT chart by TradingView Bitcoin.com News reported on PEPE and several other meme coin assets eight days ago. At that time, PEPE was the sixth-largest meme token asset by overall valuation. Today, PEPE is the fifth-largest, and the market capitalization recorded on April 22 of $141 million has risen to more than $303 million. On April 30, PEPE had $149.63 million in global trade volume, hovering just below cardano’s (ADA) daily volume on Sunday. The meme token is down 10% lower than its all-time high recorded on Sunday at $0.000000813847 per unit. PEPE is also 1,217% higher than the all-time low of $0.000000055142 per unit recorded on April 18, 2023, or roughly two weeks ago. There are 420.69 trillion PEPE coins in circulation today. According to coincarp.com statistics, there are 55,024 PEPE holders today. The top ten wallets hold 20.64% of the entire supply, and the top 100 PEPE holders control 43.82% of the current supply. While PEPE is hosted on centralized exchanges, the coin’s trading activity is mostly on the decentralized exchange (dex) Uniswap (v2). The market value of the meme coin economy has undergone significant fluctuations in recent months, with dogecoin (DOGE) and shiba inu (SHIB) experiencing ups and downs. Meme coin assets have garnered increasing demand from investors and speculation in the cryptocurrency market since their significant rise in value since 2020. The meme coin economy is well-known for its volatility, but DOGE and SHIB have remained at the forefront of the meme coin market for the last two years. While the market value of these meme coins may fluctuate, their impact on the broader crypto economy has not been ignored. What do you think about the recent surge of PEPE the meme coin and its impact on the overall meme coin market this week? Share your thoughts and predictions in the comments section below. View the full article

Sales of non-fungible tokens (NFTs) have declined by 5.76% over the past 30 days, according to the latest NFT sales statistics. The data reveals that the sales figure stood at $732.13 million in April, which is $44.75 million lower than the $776.88 million recorded in March. NFT Sales Decline by 5.76% in April, Ethereum Dominates, Bored Ape Yacht Club Leads in Collections NFT sales surpassed $1 billion in both January and February 2023; however, sales figures declined in March and April. According to cryptoslam.io’s latest NFT sales data for April, the sales stood at $732.13 million, which is 5.76% lower than the previous month. Out of this amount, Ethereum-based NFT sales dominated the market, accounting for $485 million in trades. However, Ethereum NFT sales declined by 19% in April compared to March figures. Meanwhile, Solana-based NFT sales recorded $88.16 million, down 6.78% from last month. The top five blockchains with the most NFT sales in April, following Ethereum and Solana, were Polygon, Immutable X, and BNB Chain, as per the latest data. During the month of April, Polygon witnessed a surge in sales by 22.75%. Meanwhile, Arbitrum, the sixth-largest blockchain in terms of NFT sales, saw sales spike by 78.35%, amounting to $10.29 million. In terms of NFT collections, Bored Ape Yacht Club (BAYC) emerged as the leader with $45.10 million in sales. Azuki NFTs secured the second spot with $21.91 million in sales over the past month. Nakamigos, Mutant Ape Yacht Club, and Mad Lads followed BAYC and Azuki in terms of NFT sales. Sandbox’s Land #21,221 emerged as the top-selling NFT in the past month, with a sale price of $1.256 million, approximately 20 days ago. The second most expensive NFT sale in April was Maverick Position #386, which fetched $1.05 million, 16 days ago. Azuki #3,628 secured the third spot on the list, selling for $626K, 18 days ago, followed by Azuki #5172, which was acquired for $458K. The fifth most expensive NFT sale in April was CryptoPunk #3,990, which sold for $444K, 24 days ago. As of Sunday, April 30, 2023, nftpricefloor.com reports that the collection with the highest floor value is Cryptopunks, currently standing at around 49.99 ether. Just below Cryptopunks is Bored Ape Yacht Club (BAYC), with a floor of around 48.69 ether. The floor values of the top collections following Cryptopunks and BAYC include Mutant Ape Yacht Club, Azuki, and Otherdeed. What do you think the future holds for the NFT market, and how do you think the decline in sales figures in March and April will impact the industry going forward? Share your thoughts about this subject in the comments section below. View the full article

After the most recent increase in the federal funds rate, the U.S. Federal Reserve is set to raise the lending rate by 25 basis points (bps) to 5.25% in three days, according to expectations. A recent poll of 105 economists revealed that 94 of them predict a 25bps rate hike will occur during the May 2-3 Federal Open Market Committee (FOMC) meeting. While economists are anticipating a rate hike in May, they anticipate that it will be the final one in 2023. The majority of polled economists believe that the Fed will maintain the rate at 5.25% for the remainder of the year. Report Says Next Phase of the Tightening Cycle Is Holding Benchmark Rate at Current Levels Several reports and surveys indicate that market observers believe the U.S. central bank will increase the benchmark interest rate by 25bps at the FOMC meeting this week. The FOMC meeting is scheduled to take place on May 2-3 and according to the CME Group Fedwatch tool, 83.9% suspect a 25bps rate hike will come to fruition. On the other hand, the Fedwatch tool shows 16.1% predicts no rate hike for the upcoming May meeting. The most recent predictions ahead of the next FOMC meeting are similar to the forecasts economists gave at the beginning of April 2023. Additionally, Bloomberg reported on April 29, that economists the publication talked to also believe a 25bps rise is in the cards. Bloomberg’s economics report states: Signs point to the FOMC raising rates by 25 basis points to 5.25% in the May 3 decision — despite ongoing turmoil in the banking system — and signaling that this will be the last hike for a while. The next phase of the tightening cycle will be to hold rates at that elevated level, while watching to see if inflation trends down. Survey Shows 90% of Economists Suspect a 25bps Rise in May, BOFA Analyst Says Additional Hikes Beyond May Uncertain According to a survey from Reuters, a vast majority (90%) of 105 economists polled suspect a 25bps hike. Additionally, 59 of those economists believe that the federal funds rate will remain unchanged for the rest of the year following the predicted May hike, while 26 participants are forecasting a rate cut. Furthermore, most of the economists surveyed by Reuters do not anticipate the inflation rate in the U.S. to reach the Fed’s 2% target until 2025. The economists also noted that there’s still a risk of inflation rates spiking again this year. Michael Gapen, the chief U.S. economist at Bank of America (BOFA) Securities, commented that a whole lot remains to be accomplished before the 2% goal can come to a realization. Gapen also added that it is uncertain whether or not the Fed will hike the benchmark rate after May. “On the data front, despite the slowdown in inflation in March, there is still a lot more work to be done to get back to the 2% target,” Gapen said. “We maintain the first rate cut in March 2024. Should the stresses in the financial system be reduced in short order, we cannot rule out that stronger macro data will lead the Fed to put in additional hikes beyond May,” the BOFA executive added. What do you think the impact of the expected rate hike by the U.S. Federal Reserve will have on the economy? Share your thoughts in the comments section below. View the full article

Just over two weeks have passed since Ethereum’s Shapella upgrade on April 12, 2023, which occurred at block height 6,209,536, enabling stakers to withdraw for the first time. At the time of the upgrade, slightly over 8 million ethereum was locked into liquid staking protocols. Since then, over 400,000 ether, valued at $763 million, has been added to 17 liquid staking platforms. Ethereum Liquid Staking Platforms Continue to Swell As of today, April 30, 2023, the total value locked into liquid staking protocols such as Lido Finance, Coinbase’s Wrapped Staked Ether, Rocket Pool, Frax, Stakewise, Stakehound, Ankr, Ether.fi, and Bitfrost is just over $16 billion. According to 30-day statistics, six out of the top ten protocols, ranked by value locked, have experienced gains over the past month, with four of them showing double-digit growth. At present, Lido dominates the $16 billion market, holding 73.6% or 6,206,101 of the 8,431,605 ethereum locked in liquid staking protocols. Data shows that just after the Shapella upgrade, 400,735 ethereum worth $763,600,542 using today’s ether exchange rates has been added to the liquid staking cache. Lido’s 30-day metrics show an increase of 5.50% while Coinbase’s liquid staking platform saw a loss of 0.64% over the last month. Rocket Pool’s total value locked (TVL) jumped 29.24% in 30 days while Frax’s TVL rose by 31.65%. Like Lido, Stakewise, the fifth-largest liquid staking protocol saw a modest 30-day increase rising 1.23% higher. Recent data reveals that following the Shapella upgrade, a notable 400,735 ethereum, totaling $763.6 million in value, has been added to the liquid staking cache. While Lido’s 30-day metrics depict an increase of 5.50%, Coinbase’s liquid staking platform suffered a loss of 0.64% over the past month. In the same period, Rocket Pool experienced a substantial 29.24% jump in total value locked (TVL), while Frax’s TVL rose by 31.65%. Similar to Lido’s small rise, Stakewise, the fifth-largest liquid staking protocol, witnessed a modest 1.23% increase over the past 30 days. Binance has thrown its hat in the ring, entering the fray with a newly launched liquid staking product, now standing as the tenth largest platform under Bitfrost. As of now, the protocol’s total value locked (TVL) is approximately $38.69 million, with 20,305 ether staked into the application. Liquid staking protocols have gained significant traction in recent months providing users with the convenience of earning passive staking rewards while still retaining control of their assets. The addition of 400,000 ether to the liquid staking TVL within just two weeks of the Shapella upgrade underscores the growing interest and attention this sector is receiving. How do you think liquid staking protocols will impact the overall cryptocurrency market and the future of staking? Share your thoughts about this subject in the comments section below. View the full article

Another week has passed in the world of crypto and finance, with the anniversary of Bitcoin creator Satoshi Nakamoto’s last known emails, predictions of massive declines in Americans’ standard of living, and important developments at the struggling First Republic Bank. All this and more just below, in the latest Bitcoin.com News Week in Review. The Elusive Satoshi Nakamoto: Last Emails Reveal Bitcoin Creator’s Thoughts Before Disappearing Over a Decade Ago Twelve years ago, on this very day of April 23, 2011, a cryptic individual, known only as Satoshi Nakamoto, penned one of the final correspondences to software developer Mike Hearn. The elusive mastermind behind Bitcoin conveyed in the message that he, she, or they had “moved on to other things” and confidently asserted that the project was entrusted in “good hands.” Read More Economist Warns of ‘Catastrophic’ Fall in American Living Standard — Elon Musk Weighs in on De-Dollarization, US Dollar Weaponization Economist Peter St Onge has warned that U.S. dollar weaponization will lead to “soaring inflation, a catastrophic fallen American standard of living, and a U.S. that falls off the world stage.” Commenting on the economist’s warnings, Tesla and Twitter CEO Elon Musk weighed in on de-dollarization. Read More US Banking Industry Still Struggling as First Republic Bank Shares Plummet by Over 30% In the midst of a tumultuous week, First Republic Bank is struggling to regain its footing in the financial world. Reports have surfaced that the bank is poised to enter government receivership due to a massive outflow of $100 billion in customer withdrawals last month. This has prompted investors to flee the bank, causing its shares to dive-bomb by over 50% on Tuesday. Read More Gold Bug Peter Schiff Warns ‘Death Blow’ Coming for US Dollar — USD to Lose Reserve Currency Status Economist Peter Schiff has warned that a death blow is coming for the U.S. dollar and the USD will lose its global reserve currency status in this financial crisis. “People are still reluctant to call it a financial crisis, but that’s exactly what it is, except it’s bigger in scale and it’s going to be far more impactful than the 2008 crisis,” Schiff stressed. Read More What are your thoughts on this week’s hottest stories from Bitcoin.com News? Be sure to let us know in the comments section below. View the full article

The Reserve Bank of Zimbabwe (RBZ) has said it will start issuing gold-backed digital tokens on May 8. The first phase of the launch will see the digital tokens being issued for “investment purposes with a vesting period of 180 days.” The RBZ also revealed that the gold-backed digital tokens “would be used both as a means of payment and a store of value.” Gold-Backed Tokens Additional Value-Preserving Instruments According to the Zimbabwean central bank, it plans to start issuing the recently mooted gold-backed digital currency on May 8. The digital currency, which will be backed by the gold held at the Reserve Bank of Zimbabwe (RBZ), is expected to complement the physical gold coins that went into circulation in July 2022. The announcement of the digital currency’s issuance date came just a few days after the central bank governor, John Mangudya, was quoted revealing the RBZ’s intention to fight local currency depreciation with gold-backed digital currency. Also, as reported by Bitcoin.com News, Zimbabwe’s central bank hopes to curb the local demand for the greenback with the soon-to-be-launched digital currency. However, in a statement issued on April 28, the RBZ governor revealed that the issuance of the gold-backed digital tokens “is meant to expand the value-preserving instruments available in the economy.” The gold-backed tokens are also intended to “enhance divisibility of the investment instruments and widen their access and usage by the public.” Gold-Backed Digital Currency as a Store of Value As per the statement, the issuance of the digital currency will be split into two phases. The first phase will see the digital tokens being issued for “investment purposes with a vesting period of 180 days.” According to the RBZ, the gold-backed tokens will be redeemed in the same way as physical gold coins are redeemed. Prospective buyers can acquire digital tokens using local or foreign currency, the statement added. The RBZ also suggested that current holders of the Mosi-oa-Tunya gold coins will be able to acquire the digital coins using the local banking system. Under the second phase, residents with digital tokens held in e-wallets or cards will be able to use such funds to settle transactions. “The gold-backed digital tokens held in either e-gold wallets or e-gold cards will be tradable and capable of facilitating Person-to-Person (P2P) and Person-to-Business (P2B) transactions and settlements. It, therefore, means that the gold-backed digital tokens would be used both as a means of payment and a store of value,” the RBZ said in the statement. Meanwhile, Fadzayi Mahere, the spokesperson of Zimbabwe’s main opposition party, warned in a tweet that the RBZ’s gold-backed digital currency initiative could be illegal. Register your email here to get a weekly update on African news sent to your inbox: What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

United States Senator Ted Cruz has said he remains “incredibly bullish on bitcoin” which he described as the “alpha in the crypto sphere.” According to Cruz, people are attracted to bitcoin because they see it as a hedge against inflation and also as an “important check” against government spending. Bitcoin Is Still the ‘Most Dominant’ United States Senator Ted Cruz has said he is “incredibly bullish on bitcoin” and he still believes the “insight that led to its creation is still extraordinary.” In his remarks at an event organized by the Bitcoin Policy Institute, Cruz insisted bitcoin is the “alpha in the crypto sphere” because it came first and “is the most dominant one.” The remarks by Cruz, a Republican from Texas, came at a time when the Biden administration has upped the ante in its fight against the crypto industry. As has been reported by Bitcoin.com News since the start of 2023, U.S. officials and agencies have targeted crypto entities as part of the so-called Operation Chokepoint 2.0. The Securities and Exchange Commission (SEC) charges have ranged from illegally selling securities to American citizens to promoting these without the requisite permissions. "I am incredibly bullish on #Bitcoin.” – Senator @TedCruz pic.twitter.com/595jRKSwna — Michael Saylor⚡️ (@saylor) April 27, 2023 In response to the crackdown which is being spearheaded by the SEC, Republican senators including Cruz have slammed the regulatory body’s chairperson Gary Gensler. Others like the pro-crypto U.S. Senator Tom Emmer claimed that Gensler’s actions are “pushing innovation into the hands of a communist country.” Senator Cynthia Lummis, a BTC advocate and investor, also voiced her displeasure with the SEC’s crypto regulation approach. BTC a Hedge Against Inflation Meanwhile, in his address at the Bitcoin Policy Institute event, Cruz explained why he and many others are attracted to bitcoin. “One of the attractions to bitcoin is as a hedge against inflation and particularly when you have irresponsible politicians in Washington that spend money like drunken sailors,” Cruz said. Cruz added that the printing of trillions of dollars over the past two years had led to what he described as “significant inflation.” According to Cruz, since BTC is less “susceptible to government control” it can therefore act as an “important check” against wasting government spending. The Texas Senator also claimed that he likes BTC for the “same reason that the Chinese Communist government doesn’t like bitcoin.” What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

Bridgewater Associates founder Ray Dalio has warned that the U.S. and China are “on the brink of war” and “are beyond the ability to talk.” The billionaire added that their relations “are getting so bad” that U.S.-China trade could collapse. He cautioned that the next 18 months “will be a very risky period.” U.S. and China on the Brink of War, Says Dalio Ray Dalio, the founder of the world’s largest asset manager, Bridgewater Associates, warned in a Linkedin post, published Wednesday, that the U.S. and China are on the brink of war. The billionaire, who has visited China for almost 40 years and has built close friendships there, shared his perspectives from his recent 13-day trips to China, as well as from meetings with Chinese citizens, experts on China residing outside the country, and policymakers in other countries, including the U.S. Regarding U.S.-China relations, Dalio stressed: The United States and China are on the brink of war and are beyond the ability to talk. He noted that the two nations appear to be “close to having a sanctions war and/or military war that neither side wants.” Dalio clarified: “I want to emphasize that by saying that they are on the brink, I don’t mean to say that they will necessarily go over the brink. I mean to say that they are very close to crossing red lines that, if crossed, will irrevocably push them over the brink into some type of war that damages these two countries and causes damage to the world order in severe and irrevocable ways — like Russia’s invasion of Ukraine did for Russia and the world, just much bigger.” Next 18 Months ‘Very Risky’ for China and U.S. The Bridgewater Associates founder cautioned that the next 18 months will be very risky for China and the U.S. Noting that “The hawkish political influences in the United States will exert more pressure on the relationship over the next 18 months because of the emergence of the 2024 election season,” Dalio opined: That will be a very risky period because China and the U.S. are now already on the brink of war. “The political timetable of the election cycle between now and the 2024 elections in the United States and Taiwan will likely lead to more push-the-limit anti-Chinese brinksmanship from the U.S.,” he continued. The billionaire founder of Bridgewater Associates added: U.S.-China relations are getting so bad that there is reason to worry that anti-China sentiment could make doing business with China like doing business with Russia, which would lead U.S.-China trade to collapse. “This would have similarly damaging economic consequences, though many times larger, severely hurting supply chains and trade. That would at a minimum cause severe economic consequences for the U.S., China, and the world and at a maximum could lead to military war,” he cautioned. “These conflicts are affecting most countries’ and multinational companies’ relations and how the world is operating in innumerable ways that are intensifying.” Meanwhile, the U.S. Department of Defense revealed this week that it is focused on potential conflict with China. “We have a clear strategy that’s focused on China,” the deputy secretary of defense told Bloomberg. “Our focus is making sure that the PRC [People’s Republic of China] leadership wakes up every day and says, ‘Today is not the day to undertake aggression that threatens U.S. interests’ … That’s our focus today, in 2027, and in 2035 and 2045.” What do you think about billionaire Ray Dalio’s warning? Do you think the U.S. and China will go to war? Let us know in the comments section below. View the full article

Economist Stephen Jen, a former Morgan Stanley managing director, expects a shift “from a unipolar reserve currency world to a multipolar world,” with the Chinese yuan, the euro, and the U.S. dollar forming a “tripolar” reserve currency configuration. ‘A Multipolar World’ Economist Stephen Jen, the CEO of asset management firm Eurizon SLJ, expects multiple currencies will chip away at the U.S. dollar’s dominance. Jen was formerly a managing director at Morgan Stanley in London and a senior economist at the International Monetary Fund (IMF). After stating that the U.S. dollar is losing its world’s reserve currency status at “an alarming pace,” the former Morgan Stanley director told the Insider publication that the de-dollarization trend is likely to continue. However, he noted that it will “probably not to a point where a non-dollar currency commands a bigger market share than the dollar.” Jen described: More likely, we will evolve from a unipolar reserve currency world to a multipolar world. The economist pointed out that all other currencies have flaws as international currencies and potential challengers to the dominance of the U.S. dollar. Nonetheless, he shared with the news outlet: But if I have to guess, it should be the [euro] and the [yuan] having roughly equal presence. Such a ‘tripolar’ reserve currency configuration would also make sense and be more aligned with the economic heft of the three blocs. The Eurizon SLJ chief emphasized that for the Chinese yuan to gain ground as a reserve currency, China’s financial sector would need to improve in quality, noting that foreign investors are still cautious about investing in Chinese equities and bonds. “Without foreign demand for Chinese assets, Chinese savers and households cannot be allowed to invest overseas, and thus the capital controls would need to remain in place,” he stressed, adding: With capital controls, it would be difficult for the [yuan] to become a viable international currency. A growing number of people have voiced concerns regarding the U.S. dollar losing its global reserve currency status. Economist Nouriel Roubini (aka Dr. Doom) expects the world to shift to a bipolar global reserve currency system with the Chinese yuan as an alternative to the USD. The president of the European Central Bank (ECB), Christine Lagarde, said earlier this week that the USD’s reserve currency status should no longer be taken for granted. Do you agree with economist Stephen Jen? Let us know in the comments section below. View the full article

This week, the Statistics Bureau of Japan unveiled the latest core consumer price index (CPI) report for the country, revealing a surge to 3.5%. This figure comes as a surprise to analysts who had predicted a more modest 2.9% for the end of the quarter. It’s worth noting that Japan’s inflation has been steadily rising since June 2021. The timing of this uptick is also notable, as Kazuo Ueda has recently assumed the role of the 32nd governor of the Bank of Japan. New BOJ Governor Faces Rising Inflation, Central Bank to Conduct Review of Monetary Policy Measures In April, Japan experienced a surge in its year-over-year inflation rate — excluding fresh food and energy prices — which increased to 3.5%. This worsening inflation rate is a concern for the Bank of Japan (BOJ), which aims to bring the rate back down to the 2% range, like several central banks worldwide. However, the country’s economy is facing significant challenges, including the aftermath of the Covid-19 pandemic, which resulted in substantial stimulus measures and lockdown policies. Moreover, Japan is grappling with a shrinking workforce, which could significantly affect its ability to sustain economic growth. These challenges are compounded by the fact that the BOJ has a new governor, Kazuo Ueda, who addressed his first monetary policy meetings on April 27 and 28. Ueda, a Japanese economist, has opted to keep interest rates unchanged, maintaining the negative rate that Japan has held since 2016. ‘The Last and Final Source of Excess Liquidity’ The recent news is likely to add pressure on the BOJ to address the country’s accelerating inflation rate. The central bank, however, stated that it has “decided to conduct a broad-perspective review” of its monetary policy measures, indicating that it may explore new approaches to stabilize the economy. As the BOJ grapples with these challenges, it remains to be seen how it will navigate Japan’s economic future. “With extremely high uncertainties surrounding economies and financial markets at home and abroad, the bank will patiently continue with monetary easing while nimbly responding to developments in economic activity and prices as well as financial conditions,” the BOJ announcement notes. “By doing so, it will aim to achieve the price stability target of 2 percent in a sustainable and stable manner, accompanied by wage increases.” Overall, the country’s recent CPI report highlights the challenges that Japan’s economy is facing. On Friday, Hiromi Yamaoka, a former BOJ official, told CNBC’s “Squawk Box Asia” that “there remains some uncertainty in the Japanese real economy, but at the same time, inflationary pressures is becoming more imminent.” Graham Summers, an MBA at Phoenix Capital Research, believes that Japan may be the final straw in terms of liquidity. On Friday, Summers wrote, “With inflation surging in Japan, the Bank of Japan will soon be forced to end its money printing, which means the financial system would lose its last and final source of excess liquidity.” What do you think the BOJ’s broad-perspective review of its monetary policy measures will entail, and how do you believe it will impact Japan’s economic future? Share your thoughts in the comments section below. View the full article

On Friday, Michael Barr, the vice chair for supervision at the U.S. Federal Reserve, published a report on the vulnerabilities that led to the ultimate failure of Silicon Valley Bank (SVB). In addition, Marshall Gentry, the chief risk officer of the Federal Deposit Insurance Corporation (FDIC), released a similar report on Signature Bank’s collapse and its overreliance on uninsured deposits. Fed Is Confident Supervisory Recommendations ‘Will Lead to a Stronger and More Resilient Banking System’ The Federal Reserve and the FDIC published reports on Friday concerning the fall of the second and third-largest U.S. bank failures in history. The first report, published by the Fed’s vice chair for supervision Michael Barr, claims the central bank’s supervisors failed to recognize the extent of vulnerabilities at Silicon Valley Bank (SVB) as it grew in size and complexity. Barr wrote that SVB had 31 open supervisory findings while other banks had much fewer in comparison. The report offers a comprehensive perspective, noting that the Federal Reserve’s supervisory approach failed to fully contemplate the ramifications of rising interest rates. Then a slowing activity in the technology sector, ultimately paved the way for the demise of SVB. “The supervision of SVB did not work with sufficient force and urgency, and contagion from the firm’s failure posed systemic consequences not contemplated by the Federal Reserve’s tailoring framework,” Barr said. Barr’s report mentions crypto three times and one instance is located on a bar chart describing risks. “As I have previously announced, the Federal Reserve has begun to build a dedicated novel activity supervisory group to focus on the risks of novel activities (such as fintech or crypto activities) as a complement to existing supervisory teams,” Barr stated. FDIC Report Discusses Crypto Risks and SBNY’s ‘Flurry of Negative Press’ The FDIC published its report on Signature Bank’s (SBNY) collapse and the report authored by Marshall Gentry talks a lot more about crypto assets and the FTX failure. Throughout the report, Gentry discusses how liquidity risk management witnessed withdrawals of uninsured deposits rise to critical levels. On page 13, the FDIC report goes into great detail about the crypto industry turmoil that bolstered SBNY’s failure. ”The strategy exposed SBNY to greater susceptibility to liquidity, reputation, and regulatory risk due to the uncertainty and volatility of the digital asset space,” Gentry explained. The report describes how two cryptocurrencies collapsed in May 2022 (terrausd and luna), leading to additional turbulence in the industry and further discusses the collapse of FTX. It noted that SBNY’s shares were correlated with the crypto industry. “Due to its reputation as a banker to many in the crypto industry, SBNY’s stock price closely tracked these tumultuous events in the crypto industry space and dropped significantly during 2022,” the report notes. Both reports were approved by the Fed’s chair Jerome Powell and the FDIC’s chair Martin Gruenberg. What’s your take on the reports published by the Federal Reserve and the FDIC on the fall of Silicon Valley Bank and Signature Bank? Let us know your thoughts in the comments section below. View the full article

Bank of Russia decided to maintain the interest rate at 7.5% amid moderate inflation, estimated at 2.5% on an annual basis in April, although this may change later this year. The monetary authority improved its forecast for the Russian economy and now expects growth entirely in positive figures, up to 2.0% for 2023. Bank of Russia Leaves Interest Rate Unchanged for Fifth Consecutive Time At a meeting of its Board of Directors on Friday, the Central Bank of Russia (CBR) kept its key interest rate at the current level of 7.5%. The figure has remained unchanged since September 2022. The regulator explained its decision with moderate inflation. Due to the high base effect, annual inflation in the Russian Federation dropped significantly — to 3.5% in March, from 11% in February, and has been estimated at 2.5% as of April 24, leading Russian business daily Kommersant noted in a report. Bank of Russia believes that the indicator was held back by the ongoing adaptation of the Russian economy to Western sanctions as well as the increased stocks in a number of commodity groups accompanied by moderate consumer demand. The monetary authority expects inflation to remain below 4% in the coming months and to begin to gradually grow in the second half of 2023, reaching 4.5 – 6.5% at the end of the period. Previous forecasts were in the 5 – 7% range. However, expectations in the medium term are still skewed towards higher inflation risks. These are linked to significant labor shortages in some industries, the impact of geopolitical tensions on foreign trade, including tougher sanctions that would further weaken demand for Russian goods abroad and complicate production chains, logistics and financial calculations. The CBR signaled that future rate hikes are possible, elaborating: In the context of a gradual increase in the current inflationary pressure, the Bank of Russia, at the next meetings, will evaluate the feasibility of raising the key rate to stabilize inflation near 4% in 2024. Russian Economy Projected to Grow 0.5 – 2.0% This Year Among the short-term risks, the Bank of Russia highlighted “a deterioration in the growth prospects of the global economy against the backdrop of instability in the financial markets of developed countries.” At the same time, amid faster than expected increase in domestic economic activity and demand, the bank improved its forecast for Russia’s economy. The monetary policy regulator sees the sanctioned nation’s gross domestic product (GDP) growing between 0.5% and 2.0% by the end of 2023. Its previous estimate was partially in negative territory, between a decline of 1% and an increase of 1%. Expectations for the next couple of years remained unchanged — GDP growth in the range 0.5 – 2.5% in 2024 and 1.5 – 2.5% in 2025. The CBR’s decision to keep the Russian interest rate at its current levels comes amid statements by officials and analysts in Europe and America indicating that further rate increases, before pausing, are to be expected from the European Central Bank and the U.S. Federal Reserve in May. Do you think the Bank of Russia will raise interest rates later this year? Share your predictions in the comments section below. View the full article

According to multiple reports, First Republic Bank is facing significant financial difficulties and could be taken over by the Federal Deposit Insurance Corporation (FDIC) if private sector banks do not intervene. The FDIC has reportedly approached several large commercial banks regarding purchasing First Republic after the bank’s stocks dropped more than 50% on Friday. FDIC Considers Taking Over First Republic Bank as Financial Troubles Deepen, Urges Private Sector to Step In First Republic Bank’s shares were halted multiple times on the New York Stock Exchange this week, with the stock slipping 50% lower on Friday to an intraday low of $2.98 per share. By the end of the Friday trading session, it had fallen over 43% to $3.51 per share. According to sources cited by CNBC, “the most likely outcome for the troubled bank is for the Federal Deposit Insurance Corporation to take it into receivership.” However, the bank is still hoping for an alternative solution to a government takeover. The FDIC is reportedly seeking larger banks to step in and assist the troubled lender, with JPMorgan Chase and PNC Bank said to be interested in bidding on First Republic Bank after the FDIC takeover. Both banks have already provided $30 billion to prop up First Republic following the collapse of three major U.S. banks in March. First Republic Bank held a significant amount of uninsured deposits and offered low-interest mortgages to clients. However, following a considerable hike in rates by the Fed over the past year, those mortgages are not generating revenue. Last week, the bank revealed that $100 billion in uninsured deposits had been removed from its coffers. Like Silicon Valley Bank and Signature Bank, First Republic did not prepare for the rising interest rates and relied heavily on uninsured deposits from high-net-worth individuals and their businesses. What do you think about the FDIC potentially taking over First Republic Bank after seizing two major banks last month? Let us know what you think about this subject in the comments section below. View the full article

Scottish-Salvadoran driver Sebastian Melrose has made his debut in the Porsche Carrera Cup racing championship. The 25-year-old, who took part in a popular Netflix TV series last year, drives a Bitcoin-branded 911 that features the flag of crypto-friendly El Salvador on its rooftop. Bitcoin Racing Team Joins Porsche Carrera Cup With Netflix Celebrity in the Car British racing team Bitcoin Racing has joined the Porsche Carrera Cup together with Richardson Racing, not only to win prizes in one of the U.K.’s biggest racing championships but also to promote crypto. The tandem hired a newcomer to the series, Scottish-Salvadoran driver Sebastian Melrose, who debuted last weekend at the Donington Park circuit. Melrose, who owes a great deal of his fame to his participation in the “Too Hot to Handle” dating game show on Netflix, sat behind the wheel of a “Bitcoin Porsche,” a 500-horsepower 911 GT3 that is sporting the bitcoin logo on its door panels, and on its roof, the flag of El Salvador, the Latin American nation spearheading crypto adoption as legal tender in the world. Good morning #bitcoin! As we race in the UK’s most popular motorsport package, we’re excited to use this platform to spread positivity and education about the power of bitcoin. Let’s come together to share the beauty of bitcoin and the amazing things happening in El Salvador pic.twitter.com/yHKxw7ANVv — BitcoinRacing (@bitcoin_racing) April 25, 2023 The racing team has embarked on acquainting a wider audience with cryptocurrency through automotive sport and has been endorsed by El Salvador for that initiative. It expressed its intentions on social media earlier this month. “Bitcoin Racing is proud to announce that we’ll be driving bitcoin adoption in the Porsche Carrera Cup GB, and we’re doing it with the help of our Salvadoran driver and Netflix star, Seb Melrose … As a team, we believe in the power of bitcoin, and we’re using the Porsche championship to promote its adoption,” the team said in a series of tweets. The championship consists of eight race weekends across the United Kingdom and is aired live on ITV. “With a TV audience of 2.2 million and over 400,000 live spectators per season, we’re taking the message of bitcoin to millions outside of the sector,” Bitcoin Racing stated. “This mission, to accelerate bitcoin adoption, will be amplified by our pilot Sebastian, who has almost 1 million followers,” the team elaborated, adding that it’s also proud to be promoting El Salvador with the hope of improving the perception of the country. “I’m super excited and really motivated to be entering the Porsche Carrera Cup GB this season with Bitcoin Racing powered by Richardson Racing,” Melrose was quoted as saying. Richardson Racing will take care of the technical and mechanical maintenance of his car, which is last season’s winner. Do you think auto racing sports have the potential to support wider cryptocurrency adoption? Tell us in the comments section below. View the full article

According to regulations published by the country’s treasury secretary, global crypto exchanges used by Kenya’s estimated 4 million users will start paying a 1.5% tax on revenues earned. Tax-Avoiding Digital Asset Platforms The Kenyan Treasury has said it will start levying taxes on revenues earned by cryptocurrency exchanges used by an estimated 4 million local residents. According to a report by Business Daily Africa, Kenyan authorities will rely on the 1.5% digital tax service that became effective on Jan.1, 2021. Initially proposed in 2020, the digital tax is the Kenyan government’s attempt to extract revenue from leading crypto exchanges and tax-avoiding digital asset platforms. As reported by Bitcoin.com News in early January 2021, the Kenya Revenue Authority (KRA) said it expected to get $45.5 million (5 billion Kenyan shillings) from the tax. Meanwhile, as shown in the 2023 regulations’ value added tax (electronic, internet and digital marketplace supply) published by Treasury Cabinet Secretary Njuguna Ndung’u, Kenya can now target global crypto exchanges. “For the purposes of these Regulations, a taxable electronic, Internet or digital marketplace supply include…facilitation of online payment for, exchange or transfer of digital assets excluding services exempted under the Act,” the published regulations state. Alongside Nigeria and South Africa, Kenya has one of Africa’s highest proportions of the population owning crypto. However, like its peers on the continent, Kenya has not recognized cryptocurrencies. The Central Bank of Kenya (CBK) and its governor have warned residents against dealing with crypto assets like bitcoin. Despite the warnings, Kenyan residents continue to acquire and trade cryptocurrencies and this has prompted the government to seek ways to levy taxes on crypto transactions. Register your email here to get a weekly update on African news sent to your inbox: What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

A growing number of banking institutions in Russia are offering customers the option to save in Chinese yuan. The trend coincides with declining demand for U.S. dollar and euro deposits amid currency restrictions that triggered a flight of funds to bank accounts abroad. Demand for Dollar, Euro Accounts Expected to Drop Further, Requests for Yuan Deposits Surge in Russia Fewer Russians want to open local bank accounts in major Western currencies amid restrictions on what they can do with their money. Data from the Bank of Russia shows that about half of all foreign currency savings in Russian banks have been transferred to foreign bank accounts in 2022, and interest in new deposits has noticeably dropped, the daily Izvestia wrote in an article. A “massive decline” in demand for deposits in U.S. dollars and euros is to be expected, according to Anna Romanenko, director of communications at the financial marketplace Vbr.ru. The number of banks supporting deposits in these foreign currencies has decreased as well, the expert pointed out. At present, no more than three dozen lenders open such accounts. “According to our data, by January of this year, the number of online requests for deposits in dollars and euros reached a minimum for the past two years,” Romanenko noted. And while due to the weakening of the ruble in March, interest in the dollar temporarily increased, demand for the euro is “still minimal,” she detailed. Interest in Dollar and Euro Accounts to Continue to Fall if Currency Restrictions Are Extended Among the reasons for this trend is the $10,000 cap on withdrawals which was in place until Sept. 9, 2022. Besides, Russians can withdraw dollars only if they were deposited to their accounts before March 9, 2022 while any newly credited amounts must be converted to Russian rubles before withdrawal. “If the restrictions are extended, interest in such deposits will continue to fall,” Romanenko is convinced. At the same time, the expert believes an increase in demand for the Chinese yuan, as an alternative foreign currency, can be expected. Anna Romanenko highlighted that 49 banks in the Russian Federation already have such offerings. “Since March, we have seen a surge in demand for the yuan — interest in the Chinese currency has tripled in a month and continues to increase by 15–20% weekly. The attractiveness of the terms is increasing, too — you can already find deposits with a rate of up to 3%,” she elaborated. Reports in March revealed that the yuan has replaced the euro in the top three currencies preferred by Russians for their savings. According to a study by the Finam financial portal, 17% of private individuals held the Chinese fiat and 8% had European money, while over a third chose the ruble. Do you think the popularity of Chinese yuan deposits will continue to grow in Russia? Tell us in the comments section below. View the full article

The economy minister of Argentina, Sergio Massa, announced that starting this month, payments for imports coming from China will be settled using the Chinese yuan. The agreement, which will allow the country to safeguard its dwindling dollar reserves, involves the disbursement of more than $1 billion in April. Argentina to Settle Bilateral Transactions With China in Chinese Yuan Argentina, one of the big three economies in Latin America, will use the Chinese yuan to pay for certain imports. According to statements from Argentine Economy Minister Sergio Massa, the country will begin settling payments for Chinese imports using the Chinese yuan, in the context of saving the scarce dollars that the country still has left. The agreement is perceived by analysts as a positive pact for the nations, as China deepens the penetration and usage of the Chinese yuan in Latam, and Argentina manages to leverage $5 billion of the “swap” reserve that was approved between Argentine President Alfredo Fernandez and Chinese President Xi Jinping, solidified in a bilateral meeting which took place at the 17th G20 summit back in 2022. China is currently Argentina’s international partner, and this move will ostensibly allow the country to lessen the weight of imports on the weakened state of Argentine reserves. Just for April, there are already $1.07 billion in imports that will be settled with the Chinese yuan, and $0.8 billion are already set to be paid in the same way in May. Argentine Crisis and Reactions The Chinese concession given to Argentina by Chinese President Xi Jinping allows the central bank to focus its attention on the devaluation and inflation spiral Argentina is currently experiencing by injecting resources to stabilize its fiat exchange rate, which reached record lows last week against the U.S. dollar. Massa also stated that using the Chinese yuan will serve to disarm a corruption scheme that justified using Uruguay as a bridge for the payment of Chinese imported goods in dollars. In this regard, he stated: This swap in the guarantee of continuing to produce with intermediate goods from China, avoiding the triangulation detected — which was somehow used to pay more for what Argentina imported, than what (the intermediary) bought cheaper. The measure generated mostly positive reactions from the main Small and Medium Enterprise (SME) associations according to Argentine news agency Telam. Leo Bilanski, president of ENAC, one of these organizations, said operating using the Chinese yuan presented several advantages. He explained: Being able to operate in the national currency of both countries makes trade transparent and boosts, for SMEs, foreign trade operations within a framework of dollar restrictions and financial speculation with the illegal dollar. What do you think about the shift to the Chinese yuan that Argentina is executing to settle bilateral transactions with China? Tell us in the comment section below. View the full article

Micheal Saylor, the founder of Microstrategy, has told people living in inflation-stricken Argentina that they now “need bitcoin.” While many bitcoiners have welcomed Saylor’s suggestion, a few critics have said the top crypto asset’s volatility makes it an unsuitable alternative for the faltering local currency. The Dollarization Option As the Argentinian currency — the peso — continued with the slide that has seen it depreciate by more than 40% over the past twelve months, Micheal Saylor, the founder of Microstrategy, has chimed in by tweeting that people living in the South American country now “need bitcoin.” In a subsequent tweet, Saylor, a bitcoin critic turned advocate, also shared news about the South American country’s inflation rate after it topped 7.58% per day. If you live in Argentina🇦🇷 right now, you need #bitcoin. — Michael Saylor⚡️ (@saylor) April 22, 2023 The tweets by Saylor, whose firm is one of the largest corporate holders of BTC, came as reports suggested that some Argentinian politicians favor replacing the peso with the U.S. dollar. As reported by Bitcoin.com News, the Argentinian presidential aspirant Javier Milei has said dollarization can put the brakes on inflation, which officially stood at 103.4% in March. Milei, who is seen as a frontrunner in presidential elections set to be held on Oct. 22, said he plans to shut down the central bank before starting the dollarization process. Steve Hanke, a professor of applied economics at Johns Hopkins University, has similarly suggested the South American country can only escape its present predicament by dollarizing. Argentina has turned into an over-indebted IMF deadbeat. By my measure, the Argentinian peso has depreciated against the USD by 52% since Jan 1, 2022. ARG must dump the peso and dollarize NOW. Argentina, THE WORLD'S BIGGEST DEADBEAT. pic.twitter.com/4HyFei1WzO — Steve Hanke (@steve_hanke) April 25, 2023 Yet, despite the apparent widespread support for dollarization in Argentina, critics of the U.S. dollar, including Saylor’s followers on Twitter, have voiced their support for his call on residents to choose bitcoin instead. Policy Brief: Argentina’s Fiscal Imbalances Will Not Go Away After Dollarization However, some of Saylor’s followers on Twitter like Manu Ferrari B, a self-proclaimed “liberty maximalist,” have said BTC is too volatile and therefore it cannot be a viable alternative to the falling peso just yet. The user suggested that while it is possible for a bitcoin-backed stablecoin to become the solution, more still needs to be done. He added: But the whole tech is not ready, yet. Most bitcoiners not living in Argentina, Líbano, Venezuela will not understand this. Most bitcoiners talking about Argentina don’t know what they are talking about. Completely centralized stablecoins running on fiat legacy rails are also not a solution. In addition to being an expensive undertaking, dollarizing the Argentinian economy would result in the country’s central bank becoming subservient to the policies of the U.S. Federal Reserve. Dollarizing would also see the country’s central bank losing seigniorage — the profit earned from printing currency. A policy brief published by the Policy Center for the New South on April 28, 2022, described the calls for dollarizing the economy as the “revival of a zombie idea.” Denouncing the Argentinian Congress’ proposal to retain the greenback as the country’s primary currency, the brief warned that the country’s “fiscal imbalances will not be eliminated by dollarization.” The brief also said dollarization would further require “a selective default of domestic currency liabilities, a brutal devaluation, and/or a unilateral conversion of public deposits.” What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

Donald Trump has warned that the U.S. dollar is crashing and soon will “no longer be the world standard.” The former president of the United States further warned that “we are very close” to a third world war happening. “Joe Biden has led us to the very brink of World War III,” he stressed. Trump on Inflation, Dollar Crashing, World War III Donald Trump released a video Tuesday following Joe Biden’s announcement that he is running for the president of the United States in 2024. The former U.S. president began by outlining the damage to the U.S. economy caused by Biden in a few short years, including his “spending calamity.” Trump described: American families are being decimated by the worst inflation in half a century. Banks are failing, our currency is crashing, and the dollar will soon no longer be the world standard, which will be our greatest defeat in over 200 years. “Joe Biden has led us to the very brink of World War III,” Trump continued. However, he clarified: “I’m not predicting World War III but I will say this, we are very close.” He then promised that if he’s elected president in 2024, “we will prevent World War III from happening.” Trump recently warned that China is trying to displace the U.S. dollar as the number one currency throughout the world. He also cautioned that the USD losing its world’s reserve currency status is like America “losing a world war,” emphasizing: “We’ll be a second-tier country.” This week, the deputy chairman of Russia’s Security Council, Dmitry Medvedev, also urged all countries to make efforts to avoid the outbreak of a new, full-scale global conflict. “We all need to work to ensure that this threat of global confrontation, of a hot, full-scale World War III should not materialize,” the Russian official said. What do you think about the statements by Donald Trump? Let us know in the comments section below. View the full article

Rich Dad Poor Dad author Robert Kiyosaki has warned of economic chaos, a war breaking out, hyperinflation, and rising starvation. Commenting on de-dollarization on a “massive scale,” he stressed: “It’s a weaponization of our U.S. dollar against the world … It’s all coming down fast right now.” Robert Kiyosaki on De-Dollarization on ‘Massive Scale’ The author of Rich Dad Poor Dad, Robert Kiyosaki, is back with more dire predictions about the U.S. economy, the dollar, and global economic chaos. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. Over 32 million copies of the book have been sold in over 51 languages across more than 109 countries. During his Rich Dad radio show, which aired last week, Kiyosaki discussed de-dollarization with Andy Schectman, CEO of Miles Franklin Precious Metals Investments. Schectman began by highlighting recent events that led to what he described as “de-dollarization on a massive scale,” including the meeting between French President Emmanuel Macron and Chinese President Xi Jinping. “When our allies are breaking rank, it is going to speed things up, I believe, tremendously,” he emphasized. Kiyosaki concurred, stating: It’s a weaponization of our U.S. dollar against the world and the world’s pissed off about it right now … It’s all coming down fast right now. It’s going faster and faster. The two proceeded to discuss the catalysts for the rising de-dollarization trend across the globe. They include Saudi Arabia entering trade alliances with China, Russia, India, and Pakistan to step further away from U.S. dollar reliance and China settling trades with Brazil in local currencies. They also mentioned the BRICS nations’ de-dollarization efforts and the economic bloc potentially launching a new currency. Several countries, such as Indonesia, are also following the BRICS’ lead and shifting away from the U.S. dollar for trade settlements. The BRICS countries are Brazil, Russia, India, China, and South Africa. Gresham’s Law and Triffin’s Dilemma ‘Violated’ “There are two basic laws that are violated,” the Rich Dad Poor Dad author explained. “When Nixon, in ‘71, took the dollar off the gold standard, what happened was that he violated Gresham’s Law, and Gresham’s Law says when bad money enters a system, good money goes into hiding.” Kiyosaki continued: “The second law is Triffin’s Dilemma and that happened in 1944. What happened in 1944 at the Bretton Woods agreement in New Hampshire was the world said that we agree that the world will trade in U.S. dollars … but now the Bretton Woods agreement is falling apart.” The famous author added: “Triffin’s Dilemma meant the U.S. had to supply dollars to every central bank throughout the world, so we had to print probably quadrillions of dollars.” However, he stressed that when the BRICS nations gang up against “the playground bully, the U.S.,” they say: “Take your dollars back.” Kiyosaki then warned: When those dollars come roaring back into America, we have a thing called hyperinflation, and every time there’s hyperinflation, guess what happens, dictators arise and when dictators arise, the murder starts. Schectman shared: “You will wake up Monday morning and it’ll be: ‘Oh my God, what just happened.’ Because in the middle of the night, while we were all sleeping, all of the OPEC members who are all on the Belt and Road Initiative, they’ll stand arm-in-arm and say: ‘We’ve decided … we’re going to take the yuan until the new BRICS currency is out.’ Whatever they say, those dollars will start flooding home before we can even wake up and we’ll wake up to interest rates spiking … and the whole system in chaos.” Citing a video by Bridgewater Associates founder Ray Dalio explaining “the changing of world order,” Kiyosaki stressed: Out of all this chaos … the dollar is going to come back in trillions — hyperinflation, war breaks out, starvation increases … I hate to say this, and I hope I’m wrong, it’s the end of the American Empire. It happens all the time and it doesn’t happen peacefully. Meanwhile, Kiyosaki is planning to buy more gold. He tweeted Monday: “Gold to crash. Steve Van Meter, whom I respect, predicts gold to crash to $1,000. He states markets are tired of waiting for gold to go higher. If gold drops to $1,000 I will buy more. I am an investor, not a trader. To me, gold, silver, and bitcoin are real money. To me cash is trash.” What do you think about the warning by Rich Dad Poor Dad author Robert Kiyosaki? Let us know in the comments section below. View the full article

On April 27, Coinbase, the crypto exchange based in San Francisco, made public the disclosure of its response to the Wells notice it had received from the U.S. Securities and Exchange Commission (SEC) back in March. The company maintained that the regulatory body’s enforcement actions were in direct contrast to the agency’s previous approval of the firm’s public listing via its S-1 filing. Coinbase asserted in its response to the SEC that it is the “innocent investors who stand to lose the most from the commission’s abrupt about-face.” Coinbase Responds to U.S. Securities Watchdog’s Wells Notice Coinbase’s CEO, Brian Armstrong, presented his company’s response to the U.S. securities regulator on Thursday, divulging their Wells response. In direct opposition to the SEC’s enforcement actions, Coinbase maintains a firm disagreement, while the correspondence made it clear that the regulator should have been aware of this stance when Coinbase went public. The animosity between the two entities was further highlighted in Coinbase’s response, where the exchange explained that the SEC had neglected to provide clear guidelines for the regulator’s recent enforcement actions. “If the commission had believed in April 2021 that Coinbase’s core businesses violated securities law, it would have been required by its own mandate to prevent the S-1 from becoming effective to protect the investing public,” the response says. “Instead, it allowed the offering to proceed, and millions of members of the public invested their savings in Coinbase. Investors could only infer by this approval that the Commission did not think Coinbase’s core business was unlawful.” Coinbase CEO: ‘We’re Confident in the Facts and on the Law’ On Thursday, Armstrong reaffirmed Coinbase’s commitment to creating innovative products that promote economic freedom. “We are committed to building in the U.S. and around the world,” declared the Coinbase CEO. “We will defend ourselves and stand up for the rule of law.” Coinbase’s Wells response conveyed its bewilderment at the regulatory body’s abrupt change in attitude, particularly given the exchange’s extensive interaction with the SEC during its public listing process. “The staff’s laundry list of proposed charges all rest on three primary legal theories, each of which is flawed and untested,” asserted the missive. Coinbase’s Wells response comes on the heels of the company’s announcement that it had initiated legal proceedings in federal court, demanding that the SEC respond to their petition filed in July of 2022. Similarly, the Wells response pledged to continue cooperating with the SEC in the hopes of amicably resolving the matter. What are your thoughts on Coinbase’s response to the SEC’s Wells notice and its stance on the regulatory body’s enforcement actions? Let us know in the comments section below. View the full article