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Authorities in Kazakhstan have calculated the energy used in the country’s crypto mining industry which competes for electricity with other sectors of the economy and households. The government has also estimated the additional supply necessary to meet the growing demand from mining farms and proposed a cap on the power rating of new facilities. Kazakhstan Measures Power Usage in Crypto Mining Sector, Estimates Deficit In an effort to explain why Kazakhstan is considering imposing restrictions on new cryptocurrency mining operations, the Ministry of Energy told local media that data centers minting digital coins use 5 megawatts (MW) of electricity each hour. Just a single mining facility burns an average of 3.6 million kilowatts (kW) a month, the department stated, noting that the amount equals the consumption of 24,000 homes. As China has been cracking down on cryptocurrency miners this year, the Central Asian nation has become an attractive destination for many businesses from the mining industry with its low energy rates. As a result, electricity consumption has increased by 7.4% in the first nine months of this year, reaching almost 83 billion kilowatt-hours (kWh), government figures show. Officials in Nur-Sultan have already blamed the spike on some 50 mining farms operating in the country. With a total project capacity of over 972 MW, the load they currently exert on Kazakhstan’s power distribution network has been estimated at more than 693 MW. On top of that, power usage by illegal mining facilities is likely to have risen, too. The Energy Ministry told the business news portal LS that the excess consumption growth, which can be attributed to mining centers, is around 1,050 MW while the share of underground crypto miners is believed to be in the range of 250 to 450 MW. Government Wants to Limit Capacity of New Mining Farms to 100 MW Meeting the growing needs of the mining industry would require an increase of electricity generation by at least 1,000 MW which can happen in the next four to five years, the department noted. In early October, Kazakhstan’s Minister of Energy Magzum Mirzagaliev said that the government intends to build power plants with a combined capacity of 3,000 MW during the same period. To prevent the situation from deteriorating, the ministry is recommending a 100-megawatt capacity limit on new consumers connecting to the power grid. The measure is expected to affect projects building crypto mining farms in the country. This isn’t the only bad news for cryptocurrency miners and potential investors. This month, lawmakers put forward a proposal to introduce registration for mining entities operating in the country. Concerned with the growing energy consumption in the sector, a group of deputies in the Mazhilis also called for the adoption of higher electricity rates for enterprises involved in the extraction of digital currencies. Do you expect Kazakhstan to limit the size of crypto farms and introduce other restrictions and tariffs for the coin mining sector? Tell us in the comments section below. View the full article

Developers of the Binance Smart Chain, the Binance-backed decentralized blockchain platform, have proposed applying a mechanism to burn BNB tokens based on the utilization of the network. According to the proposal, this would benefit both validators and holders due to the increase in value that the token would experience thanks to token burns. The proposal, called Binance Evolution Protocol 95 (or BEP-95), bears a striking resemblance to EIP-1559, an already implemented Ethereum proposal that also burns fees. Binance Smart Chain Could Burn Gas Fees Binance Smart Chain, the decentralized blockchain backed by Binance, could be implementing a gas-burning mechanism in the near future. Developers of the chain unveiled a proposal that points in that direction. The proposal, called BEP-95, would burn some of the fees that users spend to make transactions or to interact with smart contracts on the network. Normally these fees would go to validators as rewards for securing the network. But with BEP-95, 10% of these funds would be burned depending on network activity. This percentage is subject to change, and members can change this number via community vote. According to the proposal, the goal of this new implementation would be to “speed up the BNB burning process and improve its intrinsic value by burning a portion of gas fees.” Chasing Sustainability Binance Smart Chain developers could be betting on this change to make BNB more sustainable. Currently, Binance conducts BNB burns that are announced on a regular basis. But the exchange only agreed to burn 100 million BNB tokens. After this number is reached, no more burns will be conducted by the exchange. By changing the economic policy of the network, developers aim to ensure that the currency remains competitive, decreasing the amount of BNB in the market and making it more scarce. This move seems to be mimicking the proposal that Ethereum approved earlier this year, called EIP-1559, that also implemented burning a part of the fees that would normally go to miners. This new economic proposal seems to have contributed to the price growth that Ethereum has experienced since its approval. While Ethereum doesn’t have a max supply, BNB does have a limited max supply of 200 million. Still, there is a common interest in keeping the issuance and supply in check to maintain price stability. The proposal is still in its initial stages, and could change before being implemented on the BSC blockchain. What do you think about Binance Smart Chain devs proposing to burn BNB coming from gas fees? Tell us in the comments section below. View the full article

After failing to roll out its CBDC on October 1, the Central Bank of Nigeria (CBN) has released a document in which it reiterates its commitment to launching the e-naira. In fact, in this document titled The Design Paper for the E-naira, the CBN says it is now ready to launch Nigeria’s CBDC. CBN Prioritizes Robust Ecosystems However, in the same document, the central bank appears to downplay the implications of failing to launch as planned. Instead, the CBN attempts to highlight the importance of getting things right the first time and how this guarantees the digital currency’s success in the long term. The document explains the CBN’s position: While the launch of the e-naira is an important event, it is one milestone on a long journey. The e-naira is a process, not a single step. Over time, the CBN believes the robust ecosystems that will be built on the e-naira platform will ensure Nigeria and Nigerians receive all the benefits from the e-naira. E-Naira Roadmap Instead of putting its entire focus on launching the e-naira on time, the CBN says it has spent time working on the e-naira design and architecture. It has also prioritized sharing with prospective e-naira users the digital currency’s functionalities, the risks of the e-naira and how they will be mitigated, and the e-naira implementation roadmap. According to the central bank, it is these critical details that should give comfort to Nigerians that the e-naira, which will be available to offline users, has been well-conceived and the launch has been robustly planned. What are your thoughts about this story? You can share your views in the comments section below. View the full article

The executive power will not oppose cryptocurrency investments, a high-ranking government official has told lawmakers in Pakistan. The statement comes as a regional high court has urged the federal government to regulate cryptocurrencies and formed a committee to look into the matter in the coming months. Minister Says Pakistan Government Has No Objection to Investments in Crypto Addressing members of the National Assembly this week, Pakistan’s Minister of State for Parliamentary Affairs, Ali Muhammad Khan, recognized cryptocurrency as a new concept. He then noted that the government did not have any objection if the Pakistani youth would take the opportunity to invest through this new technology. Khan made the comments on Wednesday in response to a calling attention notice in the lower house of parliament regarding the absence of a regulatory framework for cryptocurrencies in the country, the Daily Times reported. The minister explained that the government did not oppose their regulation but pointed out that the State Bank of Pakistan (SBP) had some reservations that needed to be addressed. The government official revealed that the monetary authority is currently reviewing the matter which should be referred to the Finance Committee. “The SBP was saying we should move forward in this regard very carefully,” Ali Khan added. The change in course comes three years after the State Bank of Pakistan introduced a cryptocurrency ban. In a circular released in the spring of 2018, the SBP stated that virtual currencies like bitcoin, pakcoin, onecoin and tokens from initial coin offerings are not legal tender and prohibited all dealings with them including holding, transferring, and trading. At the time, the bank further emphasized that no entity or individual was authorized to issue, buy, sell, or exchange the digital coins. But in April of this year, the head of the SBP, Reza Baqir, said that the regulator was studying cryptocurrencies and their potential for bringing transactions taking place off the books into a regulatory framework. Regional High Court Orders Government to Report on Crypto Regulations Again on Wednesday, the Sindh High Court, the highest judicial authority in the southeastern Pakistani province, urged the government in Islamabad to adopt cryptocurrency regulations. It also formed a committee headed by the federal finance secretary and tasked it with producing a report on the matter within the next three months. During a hearing of a petition challenging the crypto ban, the court insisted steps should be taken to regulate cryptocurrencies in consultation with all stakeholders, including the Security and Exchange Commission of Pakistan (SECP), the SBP, the Ministry of Law and Justice, and the Ministry of Information Technology and Telecommunication. According to a report by the Express Tribune, the proceedings were attended by members of the Federal Investigation Agency (FIA), SBP, and the petitioners. The publication also informed of another crypto-related case that had been heard at the Lahore High Court with the participation of legal representatives of several interested parties such as the SECP, SBP, FIA, and the federal government. The English-language daily revealed that the court sought assistance from the institutions on the subject, asking them to present relevant legal positions. As the popularity of cryptocurrencies increases globally, many Pakistanis have turned their attention to these assets as well. The newspaper points to the large number of social media groups explaining how to buy, trade, and mine crypto as Youtube videos in Urdu devoted to bitcoin have hundreds of thousands of views. More and more traders from Pakistan are using online cryptocurrency exchanges and crypto applications often have more downloads than the apps of the country’s largest banks. Do you expect Pakistan to adopt crypto-friendly regulations in the near future? Tell us what you think in the comments section below. View the full article

The American journalist, Youtuber, podcast host, and political commentator, Tim Pool, has talked about bitcoin on numerous occasions and even more so these days as the crypto asset crossed its all-time price high. After the Proshares exchange-traded fund (ETF) launched on the New York Stock Exchange (NYSE), Pool asked his 897,700 Twitter followers if they thought bitcoin would hit $200K. Tim Pool ‘Feels Bad’ for People Dismissing Bitcoin Tim Pool is a well known person on various social media channels due to the work he’s done as a journalist, show host, and commentator. When it comes to living in these modern times, Pool always has something to say in order to spark meaningful debate. Pool is a former member of Vice Media and in 2014 he also participated in Fusion TV. The activist is also well known for his live-streamed recordings of the 2011 Occupy Wall Street protests in 2011. These days, Pool hosts a Youtube show and podcast called “Timcast IRL” and he discusses things like politics, government, finance, specific people making headlines and a number of other subjects society deals with every day. In Pool’s last Youtube video, he discussed the buckling supply chain that’s been hurting the American and global economy. Pool has a lot of fans because he adheres to being objective when he reports, which is something the public accuses mainstream media of abandoning. Pool is also a fan of the leading crypto asset bitcoin (BTC) and has mentioned it on several occasions. Last year in October, Pool discussed bitcoin alongside the ‘Great Reset’ subject as well. As bitcoin smashed through its previous all-time price high captured in April, on October 20 Pool said he believes a single BTC could be worth a million dollars. “People still sh** on bitcoin and I feel bad for them,” Pool tweeted. “A local guy out here told me he just became a millionaire off his investment, bought in several years ago and forgot about it.” The popular Youtuber added: It’s the rise of a new financial technology and I believe 1 BTC will eventually be equivalent to $1M. Youtube Host Thinks Cryptocurrency ‘Is a Positive Force’ On September 21, Pool’s show featured author Matt Palumbo and the Youtuber discussed cryptocurrencies at great length. The title of the video is called: “Cryptocurrency Is a Positive Force as the Establishment Loses Control, but They’ll Try to Control It.” In the video, Pool talks about how Max Keiser tried to convince him to buy bitcoin in the early days, but at the time he passed. Pool also revealed some of the crypto assets in his portfolio, which include dogecoin (DOGE), bitcoin (BTC), ethereum (ETH), and cardano (ADA). Prior to that video, Pool discussed the subject in another Timcast IRL video dubbed: “Tim Gets Animated About Bitcoin, Insists It’s Good For Many Things And Allows Greater Freedom.” During the discussion with the co-publisher of Human Events, Will Chamberlain, Pool stressed that BTC is “used to store value outside of the Fed.” In 2018, Pool said that “crypto can save free speech,” and he argued that digital assets can circumvent third parties that partake in financial censorship. What do you think about Tim Pool’s latest statements about bitcoin possibly reaching $1 million per unit? Let us know what you think about this subject in the comments section below. View the full article

On Friday, the Valkyrie Bitcoin Strategy Exchange-Traded Fund (ETF) launched on Nasdaq under the ticker BTF and dropped in value not too long after the ETF first came out of the gate. The second bitcoin ETF to launch in the United States followed bitcoin’s spot price movements on Friday, as BTF started the day above $25 and dropped to just over the $24 mark. Initial Market Performance of Valkyrie’s Bitcoin ETF Lackluster Compared to the First Bitcoin ETF Debut Valkyrie’s bitcoin futures ETF officially launched on Friday and reached a high of $25.60 per unit at around 9:00 a.m. (EDT). The senior ETF analyst for Bloomberg Intelligence, Eric Balchunas, tweeted about Valkyrie’s ETF after the first few minutes of trading. “BTF up and running with a healthy $10m traded in [the] first [five minutes], BITO is at $30m. You have to be happy with that spread if you are BTF, [it] will be tough to keep up [though],” Balchunas said. The stock subsequently fell in value as it followed the spot price of bitcoin’s drop before the weekend. BTF tapped a low of $23.96 per unit and as the day progressed it inched above the $24 handle. The Proshares ETF BITO also followed bitcoin’s spot market price and dipped under the $40 handle to $39.39 down 3.5%. BTC spot markets fell from $63,735 per unit in the morning (EDT) to a low of $59,954 on Bitstamp at 12:15 p.m. in the afternoon. Vaneck Bitcoin Exchange Traded Fund Expected to Drop on Monday BTC managed to jump back above the mid-$60K per unit position during the trading sessions on Friday afternoon. A great number of bitcoin enthusiasts were excited to see Valkyrie’s bitcoin futures ETF launch after the Proshares ETF saw a phenomenal market performance this past week. “Valkyrie… the floor is yours,” the Twitter account dubbed ‘British HODL’ said on Friday. “2 Bitcoin ETF’s at trading open today. Let the corporate hunger games for bitcoin allocations begin,” he added. After the weekend ends, next week the crypto community expects the Vaneck bitcoin futures exchange-traded fund (ETF) to launch on Monday. After years of rejections from the U.S. Securities and Exchange Commission (SEC), there will be three bitcoin-related ETFs on Wall Street. With Vaneck’s fund, two ETFs will be listed on the New York Stock Exchange (NYSE) and Valkyrie’s bitcoin futures ETF is listed on Nasdaq. Just before the closing bell on Friday, Valkyrie’s BTC managed to climb above the $24.30 region. BTF’s rise at the end of the trading day on Friday followed bitcoin’s spot price jump, after BTC went from $60,600 to $61,150 per unit. What do you think about Valkyrie’s ETF launch on Friday? Let us know what you think about this subject in the comments section below. View the full article

Traders who have yet to join cryptocurrency exchange, Bybit can now enjoy 3% bonuses on their first time deposits, capped at $3,000 per user. In addition, traders with combined trading volumes in both Spot and Derivatives of at least $100,000 will be automatically included in an exclusive lucky draw featuring a grand prize of 0.1 BTC. To be eligible to receive the bonuses, traders must first register for Bybit’s Deposit Blast-Off event here before Nov. 18, 2021, 10AM UTC. Once registered, traders must make a minimum deposit of $500 worth of eligible assets within seven (7) days for their deposits to be considered in the calculation of their rewards. Any deposits made after this timeframe will not be considered in the calculation of their reward. Among the eligible assets include BTC, ETH, BIT, USDT, XRP, DOGE, DOT, EOS, LTC, XLM, AAVE, AXS, CHZ, COMP, DYDX, LINK, MANA, MKR, SUSHI, UNI and YFI. To qualify for the lucky draw, traders will need to hit the minimum trading volume of $100,000 in both Spot and Derivatives combined before Nov. 25, 2021, 10AM UTC. Additionally, they will also need to register for the Deposit Blast-Off event before it ends. One (1) lucky winner will win the grand prize of 0.1 BTC, and two (2) others will receive 1 ETH each. The remaining 100 lucky winners will receive either a 100 USDT bonus or a 50 USDT bonus. Terms and conditions apply. More information on this event can be found on the Bybit blog. This is a sponsored post. Learn how to reach our audience here. Read disclaimer below. Listen to the latest Bitcoin.com Podcast: View the full article

The crypto asset solana has managed to capture more than 12% in gains during the last 24 hours and has recently positioned itself as the sixth-largest cryptocurrency market capitalization. The crypto asset’s overall market cap is around $62.2 billion, only 11% away from surpassing cardano’s market valuation at $69 million. Solana Takes the 6th Spot, Market Valuation Nears Cardano’s Market Cap On Friday, the crypto asset solana (SOL) has managed to take the sixth position in terms of the world’s largest crypto market valuations. At the time of writing SOL is swapping for over $203 per unit and is up 12.4% over the last day. Seven-day statistics indicate that solana has gained 37.5% this past week and during the last 30 days, SOL is up 68.2%. After the digital currency captured the sixth largest crypto position, a great number of people discussed the crypto asset on social media. At 1:30 p.m. (EDT), the hashtag #solana had around 97,900 tweets with the hashtag present in the tweet. The fifth-largest market cap holder, cardano (ADA) has lost 1.0% during the last seven days and if SOL keeps up the pace, ADA could lose its position. ADA already dropped a few notches to the fifth position after it held the third-largest crypto market cap for months. Each ADA is exchanging hands for $2.14 and the crypto asset has a market valuation of around $69 million which is less than 11% higher than solana’s. While Cardano Holders Saw 1,936% Gains in a Year, Solana’s Year-to-Date Price Increase Jumped 10,868% Now, year-to-date, ADA has seen massive gains collecting more than 1,936% in value. However, solana’s year-to-date gains have been considerably larger as SOL investors made 10,868% in gains. While the crypto asset solana is doing better than cardano price-wise, SOL also has $6.57 billion in 24-hour global trade volume, while ADA has $2.1 billion today. The top five pairs swapping with SOL today include USDT, USD, BTC, BUSD, and EUR with USDT commanding 42.71% of all SOL trades. ADA’s top trading pair is also tether (USDT) as the stablecoin captures 60.6% of all ADA swaps. The USDT/ADA pair is followed by BTC, USD, BUSD, KRW, EUR, and ETH in terms of cardano’s top seven trading pairs. Coingecko statistics show the most active cryptocurrency exchange swapping solana (SOL) on Friday is Binance. Market data on October 22, indicates that the most active exchange trading ADA is Binance as well. What do you think about solana skyrocketing in value and capturing the sixth largest crypto market cap? Let us know what you think about this subject in the comments section below. View the full article

While cheered emphatically by the crypto community, the bitcoin ETF’s simplicity hides many drawbacks, especially for long-term investors unfamiliar with the inner workings of the futures market and the rocky results of historical ETF launches. The First Crypto’s Saga Continues as Accessibility Broadens With the first Proshares bitcoin exchange-traded fund (ETF) with ticker BITO opening for trading on October 19th, investors with brokerage accounts can finally access the cryptocurrency just like they can any other stock or ETF available. For bitcoin aficionados, the SEC’s announcement catalyzed a positive change in the market, as the price of BTC hit an all-time high above $66,000 amid heightened CME futures and options activity. Likewise, crypto experts believe that with the launch of the bitcoin ETF, bitcoin as an investment option will be more widely accessible and that bitcoin’s recognition will grow. According to Ben Caselin, AAX’s head of research and strategy: Over the long term, the approval will change and elevate the conversation about Bitcoin – both in the mainstream media and among institutional investors. This in turn will likely help to further develop a regulatory framework around digital assets. The crypto community has been urging regulators to approve a bitcoin ETF for years, and many expect its arrival to inspire a new class of investors. While many ordinary investors are afraid to engage with bitcoin due to the complexities of managing wallets and safeguarding private keys, they can now simply log into their brokerage accounts and buy the ETF just like any other stock. Yet, ease of use doesn’t necessarily mean adoption will rise or deliver the steep price gains crypto hodlers anticipate. The Deceptive Value of Futures Trading in a Stock An exchange-traded fund (ETF) is a security that tracks the performance of a particular asset or a group of different assets. In the case of the first US-listed Bitcoin ETF, the ETF will be tied to front-month futures contracts, which are settled in cash at the end of the month and rolled into the following month’s contract. This is different from spot prices, which reflect the current market price for an asset. More importantly, investors in the BITO ETF have no claim to the underlying asset in this case: bitcoin. Moreover, the accompanying ease of use comes at a high price. For one, due to the contango structure of the bitcoin futures market, which reflects higher futures prices relative to spot prices, ETF investors are likely to pay a premium to participate in any bitcoin appreciation. Next, the ETF’s 0.95% management fee, which may not seem like much, seriously impacts long-term investors. For short-term day traders speculating on bitcoin’s rampant volatility, this figure is less relevant. However, this fee eats away at returns over time for long-term investors betting on appreciation, due to the ETF’s need to roll over contracts every month. This fee and contango can result in long-term underperformance relative to holding underlying bitcoin that can reach double-digit rates within years. For example, even though the difference between spot and futures prices was much tighter, the same reality played out in a gold futures ETF with no gold holdings compared to a trust holding physical gold, leading to a double-digit underperformance of 13% over a 5-year horizon. Remarking on the ETF, the CEO of the U.S. subsidiary of Currency.com, Steve Gregory, notes: People will grow more curious and hopefully when they see the futures bitcoin ETF isn’t a good deal for investors, they will explore ways to buy actual bitcoin. Once they go down that route, they will see all the easy-to-use and amazing products crypto exchanges have built. This ETF could serve as the gateway to get more traditional investors into bitcoin. While the bitcoin ETF could very well help move the ball forward in terms of crypto’s wider recognition, its impact on prices is unclear because it moves according to futures market reference rates, not the spot market. For instance, US-based gold trust GLD, which owns the gold to back up each share, has a demonstrable impact on the spot gold market. Futures activity could similarly influence bitcoin prices, especially if the newly introduced ETF sparks a feeding frenzy among institutional investors. Yet, BITO can be shorted, meaning that investors could take either side of the market. Because of the premium of futures prices relative to spot prices, some investors may choose to exploit the arbitrage opportunity by shorting the ETF and buying actual bitcoin. This could put downward pressure on ETF prices but potentially have a positive impact on the spot market. Although too early to state with certainty how one market for bitcoin will impact the other, the first day of the BITO bitcoin ETF was positive, marking one of the most successful ETF launches in history after reaching nearly $1 billion in trading volume. ‘Good for Bitcoin’ Might Not Be Good for Blockchain Adoption While the newly greenlit bitcoin ETF is great news for the Bitcoin community, it only benefits a cryptocurrency that already commands the largest market share. Other promising cryptocurrencies like ethereum, cardano, and other altcoins are nowhere near getting their own ETFs, at least for now, namely due to the absence of regulatory clarity on their categorization. Kucoin CEO Johnny Lyu adds: We think more cryptocurrency ETFs will be launched in the future as crypto-related investment products get growing interest from more traditional investors to hedge against an economic downturn. However, it took years for the SEC to approve the launch of BTC Futures ETFs, and we might not be able to anticipate another crypto ETF coming to the market in the short term until the financial regulatory bodies have more control on the stable outcome of the current experiment. Only time will tell if bitcoin ETFs will act as a primary catalyst for the growth of bitcoin only, or play a critical role in accelerating mass adoption of cryptocurrencies in general. What do you think of the bitcoin ETF rollout? Let us know in the comments section below. View the full article

Cryptoeats, a company that reportedly raised 8 million in a Series A funding round to build a crypto-based Ubereats alternative, disappeared after launching its token. According to estimations, the startup might have taken more than £500K from investors after the launch of its official token dubbed “eats.” The alleged scam was promoted by UK influencers and manufactured related apparel, and even hosting a launching party in London. Cryptoeats Initiative Vanishes After Token Launch Cryptoeats, a company that proposed to build a crypto-based Ubereats alternative, vanished from the internet just minutes after launching its official token. The company, which had an official website and claimed to have raised funds to build their proposal, stated it had run a public beta of the service, partnering with food chains like Nando’s and McDonald’s. Furthermore, the startup claimed it had already onboarded more than 100,000 customers, who have signed up to download the app and use it on launch day. But the developers of eats, the native token of the platform, emptied the wallet holding the funds coming from the initial token sale, stealing more than £500K from investors, according to reports. Soon after this, all of the social media accounts of the startup disappeared, along with its website. Cryptoeats Looked Legit Cryptoeats worried about looking legitimate before disappearing. The company first outed a PR statement where it claimed it had raised $8 million in its series A funding round in 2020. The PR statement, that was published on October 16, declared the company was “set to take a large slice of the $16.6 billion delivery app market.” The statement was issued using Globenewswire and was featured on Yahoo Finance’s website, but both references have been eliminated now. At a local level, Cryptoeats also did its work bringing U.K. influencers to promote the new initiative among their fanbase. Joey Essex, a reality TV celebrity that promoted Cryptoeats, stated to local media he lamented the situation. Essex stressed: I’m fuming. This company used my name to dupe lots of people into investing money. It’s disgusting and I feel bad for anybody in that situation. But Essex was not the only local celebrity that promoted Cryptoeats. Lots of other influencers attended a launch party last week in London, where Cryptoeats apparel was shown and worn by some of the assistants. What do you think about the whole Cryptoeats fiasco? Tell us in the comments section below. View the full article

Spanish banks are preparing for the possibility of offering crypto assets directly to their customers. According to new regulations, the Bank of Spain must formulate a list of virtual asset service providers and custody companies. However, these institutions are still not sure if they must apply, because banks already comply with anti-money laundering directives derived from other laws. Spanish Banks Jump to Comply With Crypto Laws Spanish banks are interested in offering cryptocurrency services to their customers and will be making arrangements to comply with upcoming regulations. Spanish banks are already on track to register for the list of virtual asset service providers and custody organizations that must be compiled by the Bank of Spain before October 29. The Bank of Spain announced it would release the paperwork and instructions for interested parties in the upcoming registry, but failed to do so. This has made banks uncertain whether they need to register again under applicable laws. Banks in Spain already comply with anti-money laundering laws, so for some experts, re-registering should be not necessary for banks to offer crypto services. Gloria Hernández Aler, a partner of the regulatory advisory firm Finreg, stated: It would not make sense for a bank to have to go through the requirements imposed by the standard. However, it does make sense for them to notify that they are going to provide this type of service and, probably, they will need to change their money laundering policy. Banks Flirting With Crypto Some banks that operate in Spain have already established plans to open crypto operations or are already operating with cryptocurrencies abroad. This is the case for BBVA, which has already established a commercial crypto asset in Switzerland that offers exchange and custody services. Caixabank, another Spanish bank, is starting a pilot program offering these services in partnership with Onyze, a company that offers a custody-as-a-service program for enterprises. However, this pilot will not be offered to customers for the foreseeable future. The cryptocurrency regulatory framework for the European Union, called MICA (Markets In Crypto Assets), is still under development. Sources state that while it will be difficult for the framework to be ready this year, all signs point to a release in early 2022. What do you think about the interest Spanish banks have in offering cryptocurrency services to their customers? Tell us in the comments section below. View the full article

Companies involved in oil production in Russia have come up with a project to organize the mining of cryptocurrencies right next to the oil fields they are exploiting. Data centers devoted to coin minting can be powered by the excess gas released during oil extraction which would otherwise be wasted. Ministries and Central Bank Review Crypto Mining Project by Russian Oil Industry Government institutions in Moscow are now discussing an initiative launched by Russia’s oil companies to start mining cryptocurrency at their extraction sites. The industry is proposing to utilize associated petroleum gas (APG) to generate electricity that can be used in the energy-intensive process of digital coin minting. Experts say the project can potentially attract foreign investors, primarily from China where authorities have been cracking down on bitcoin mining this year. The industrial activity is effectively banned in the People’s Republic while in the Russian Federation mining isn’t prohibited although it is not properly regulated either. The Ministry of Industry and Trade has recently asked the Ministry of Digital Development and the Central Bank of Russia (CBR) for their feedback on the idea, Russia’s leading business daily Kommersant reported, quoting a letter sent by the Deputy Minister of Industry Vasiliy Shpak. His department asks the monetary authority in particular whether this would be a legitimate undertaking. The main act regulating cryptocurrencies in Russia is the law “On Digital Financial Assets” which went into force earlier this year. Additional legislation is needed, however, regarding their circulation in Russia and related operations. The legalization of crypto mining as an industrial activity has been gaining support in government circles with the chairman of the parliamentary Financial Market Committee, Anatoly Aksakov, stating in September that it should be registered as such and taxed accordingly. Kommersant also quotes a source close to the Ministry of Industry who revealed that one of the large Russian oil companies already has a crypto mining project underway and would like to scale it up. “But this segment is in a legally gray zone and the company fears a negative reaction from the central bank, so it turned to the Ministry [of Industry] which can discuss the risks with the regulator,” the knowledgeable person told the newspaper. According to available official information, so far only the state-run Gazprom Neft, a subsidiary of Russian energy giant Gazprom and third-largest oil producer in the country, has an actual mining project. The company launched it at its oil field in Khanty-Mansi Autonomous Okrug, a region in Tyumen Oblast. According to a report from January, the oil giant managed to mint 1.8 BTC in a month. Gazprom Neft declined to comment on the matter. Do you think authorities in Moscow will allow Russian oil companies to mine cryptocurrencies at their oil wells? Tell us in the comments section below. View the full article

PRESS RELEASE. Palo Alto, October 18, 2021 – LTNM, the next generation insured asset-backed cryptocurrency, continues to gain momentum and expand its global acceptance as it announced today it will be listed on FMFW.io Exchange (formerly known as Bitcoin.com Exchange), a top-tier cryptocurrency exchange. This represents a milestone for both parties – one where LTNM will list on one of the world’s leading exchanges, while FWFW.io will be the second crypto exchange to list it. LTNM will be available for trading with BTC and USDT pairs, and the official trading is expected to start at the end of November 2021. LTNM is an insured asset-backed cryptocurrency developed by Monsoon Blockchain Corporation on behalf of a foundation. LTNM is a greener, faster, and more secure version of Bitcoin, capable of managing massive crypto transactions while being highly efficient in terms of cost and scalability. As a revolutionary new Bitcoin blockchain-based token, LTNM focuses on efficiently serving high-growth industries like Media, Gaming, Telecommunications, and Cloud Computing. Improving on Bitcoin’s energy-usage concerns, LTNM utilizes a proof-of-stake (PoS) algorithm to achieve consensus, which not only increases the TPS rate of the network but also significantly minimizes the fee. Besides, unlike other crypto assets, LTNM is insured, and backed by real-world and digital assets. Its asset backing is held in a fund model so that base asset value increases over time. It accelerates this asset-backed funds growth by depositing 80% of the transaction fee back into the asset fund that backs the currency. Thus, the more LTNM is adopted, the faster its asset funds grow, creating a self-inflating currency. Furthermore, users and businesses can unlock new revenue streams while lowering their transactional costs. The listing on FMFW.io exchange highlights the foundation’s commitment to supporting the growth of a sustainable crypto ecosystem. Danish Chaudhry, the CEO of FMFW.io Exchange, shared his views on LTNM’s upcoming listing, saying that “As we see the ecosystem move towards energy-efficiency, next generation assets like LTNM with its increased speed and low transaction fees is bound to grow exponentially within the industry as a method of digital transaction.” Chaudhry continues on by saying: “We’re very excited to see how LTNM will continue to empower their vision, and gain further outreach with our outstanding community at the exchange” Dr. Donald Basile, CEO of Monsoon Blockchain Corporation expressed his enthusiasm about upcoming listing on LTNM onto FMFW.io exchange, by stating that “we are very excited about selecting FMFW.io (formerly known as Bitcoin.com exchange) as our second exchange on our plan to list on many of the major exchanges around the world. This is a milestone event in the history of LTNM and the continuation of an exciting journey to revolutionising digital transactions. In the next few months, we will be announcing other exchanges to reach wider audiences and improve the acceptance of digital assets across the world”. About FMFW.io Exchange The FMFW.io exchange (formerly known as Bitcoin.com Exchange) is on a mission to Free the Money, Free the world. With our easy-to-use, reliable platform we enable anyone to start trading cryptocurrencies. We continuously add new assets to our more than 400 trading pairs, offer deep liquidity, 24/7 multilingual support and 100% uptime. For more information, please visit https://fmfw.io/ FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any information offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation or be relied upon as personalized investment advice. Consult a licensed or registered professional before making any investment decision. This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. Listen to the latest Bitcoin.com Podcast: View the full article

The digital currency exchange FTX Trading Limited announced the firm has raised more than $420 million in a Series B-1 fundraise. The capital raise follows the crypto exchange’s financing round at the end of July when FTX raised $900 million. After the raise was announced on October 21, FTX said the firm’s estimated valuation is around $25 billion today. Crypto Exchange Giant FTX Raises $420 Million in Series B-1 On Thursday, the crypto asset exchange FTX revealed it raised more funds in a Series B-1 financing round. The company raised $420 million from 69 different investors. According to the announcement, FTX said Ontario Teachers’ Pension Plan Board, via its Teachers’ Innovation Platform, Temasek, Sequoia Capital, Sea Capital, IVP, ICONIQ Growth, Tiger Global, Ribbit Capital, and Lightspeed Venture Partners participated in the latest financing. Moreover, in addition to the $900 capital raise in July, FTX said Temasek participated in the original Series B round and pushed the raise up to $1 billion. With all the funding raised by investors to date, FTX’s overall valuation is $25 billion the company disclosed. “We founded FTX two years ago with the idea of creating a better financial marketplace,” Sam Bankman-Fried, CEO of FTX remarked during the announcement. “Today we are focused on establishing FTX as a trustworthy and innovative exchange by regularly engaging with regulators around the world, and constantly seeking opportunities to enhance our offerings for digital asset investors,” Bankman-Fried said. On the same day as the capital raise announcement, Bankman-Fried also joined the board of directors associated with the NFT company Autograph, an NFT firm co-founded by the Super Bowl champion Tom Brady. FTX says since the last capital raise in July, the company’s userbase grew by 48% and trade volume increased by 75%. The exchange noted it averages roughly $14 billion per day in crypto asset trade volume. The company also revealed it also recently established its global headquarters in the Bahamas. FTX secured licenses in the island territory and adopted the regulatory policies mandated in the Bahamas and Gibraltar. “The additional capital and group of investors will let us provide the experience our users deserve and address other adjacent market opportunities including equities, prediction markets, NFTs, and videogame partnerships. We expect to make strategic investments designed to grow the business and expand our regulatory coverage.” FTX’s head of product Ramnik Arora said in a statement. What do you think about FTX raising an additional $420 million after raising a billion dollars in July? Let us know what you think about this subject in the comments section below. View the full article

Pimco, an asset manager with $2.2 trillion under management, is looking to start trading cryptocurrencies. “We’re trading from a relative value perspective,” the firm’s chief investment officer said. Pimco’s clients include central banks, sovereign wealth funds, public and private pension funds, financial and non-financial corporations, foundations, and endowments. Pimco Getting Into Crypto Pimco’s chief investment officer, Daniel Ivascyn, told CNBC in an interview Wednesday that his company is looking to trade digital assets, noting that some of its hedge fund portfolios are already investing in crypto-linked securities. Pimco, an asset management subsidiary of Allianz Group, is a global leader in fixed income, its website details. Pimco manages $2.2 trillion in assets as of June 30. Its clients include central banks, sovereign wealth funds, public and private pension funds, financial and non-financial corporations, foundations and endowments, financial advisors, family offices, and individual investors. Ivascyn said: Now we’re looking at potentially trading certain cryptocurrencies as part of our trend-following strategies or quant-oriented strategies, then doing more work on the fundamental side. “This will be a gradual process where we spend a lot of time on the internal diligence side speaking to investors. And, we’ll take baby steps in an area that’s rapidly growing,” he added. His comments came as the price of bitcoin hit all-time highs Wednesday following the launch of the first U.S. bitcoin futures exchange-traded fund (ETF) on the NYSE. Ivascyn also revealed that some of Pimco’s hedge fund portfolios are already trading crypto-linked securities. The CIO elaborated: We’re trading from a relative value perspective. So, we’re not taking directional exposure, but we’re looking to take advantage of mispricings between the cash product, popular trust that trades on the exchange, and then the futures. So that was a starting point for us in a very narrow segment of our business. He proceeded to comment on decentralized finance (defi). “You have to understand decentralized finance, because it will be disruptive, and it very well may disrupt our industry, in our business in particular,” he opined. According to the executive, Pimco is “thinking about scenarios where this could take us to ensure that we are competitively prepared to deal with what’s a rapidly changing environment that offers a pretty significant value proposition, particularly for younger generations, or the new generation of the investment community.” What do you think about Pimco investing in cryptocurrencies? Let us know in the comments section below. View the full article

Tesla is currently holding bitcoin worth $1.26 billion on its balance sheet, the company’s third-quarter earnings report shows. The electric car company reported a bitcoin-related impairment of $51 million in the quarter. Meanwhile, CEO Elon Musk tweeted a meme showing the price of bitcoin at $69K and ether at $4.2K. Tesla Continues to Hold Bitcoin on Balance Sheet Elon Musk’s electric car company, Tesla (Nasdaq: TSLA), released its third-quarter earnings report Wednesday. The company posted $13.757 billion in revenue, a 57% increase from the same period last year. It wrote: “The third quarter of 2021 was a record quarter in many respects. We achieved our best-ever net income, operating profit and gross profit.” Tesla’s balance sheet shows net digital assets of $1.26 billion as of Sept. 30, down from $1.311 billion at the end of the second quarter. Tesla reported a bitcoin-related impairment of $51 million in Q3. Tesla’s cash flow statement still shows that the only BTC purchase and sale were made in the first quarter when the company bought bitcoin worth $1.5 billion and sold $272 million worth of BTC. According to Tesla’s 10-K form filed with the U.S. Securities and Exchange Commission (SEC), the company’s “digital assets are initially recorded at cost and are subsequently remeasured on the consolidated balance sheet at cost, net of any impairment losses incurred since acquisition.” Tesla explained that it performs an analysis each quarter to identify impairment, adding: “If the carrying value of the digital asset exceeds the fair value based on the lowest price quoted in the active exchanges during the period, we will recognize an impairment loss equal to the difference in the consolidated statement of operations.” While Tesla never disclosed how many bitcoins it owned, CEO Elon Musk revealed in July that the amount was close to 42K BTC. At the time of writing, the price of bitcoin is $$63,053.60. It surpassed all-time highs Wednesday following the debut of the U.S.’ first bitcoin futures exchange-traded fund (ETF). This means Tesla’s bitcoin stash is currently worth about $2.65 billion. On Wednesday, Musk tweeted a meme showing the price of bitcoin at $69K and the price of ether at $4.2K. Musk has long been a crypto proponent. He revealed in July that besides bitcoin, he personally owned “a bit of ethereum and dogecoin.” The Tesla executive opined, “In general, I am a supporter of bitcoin,” noting that the BTC he owned was “worth a lot more than ethereum or doge.” In September, Musk said that governments should not try to control or regulate cryptocurrencies, emphasizing that regulators should “do nothing” about crypto. What do you think about Tesla’s bitcoin holdings and Elon Musk’s tweet? Let us know in the comments section below. View the full article

The $5.5 billion pension fund for the U.S. city of Houston’s firefighters has announced an investment in bitcoin and ether. “This investment marks the first announced investment in digital assets by a public pension plan in the U.S.” ‘A Watershed Moment for Bitcoin and Its Place in Public Pensions’ The Houston Firefighters’ Relief and Retirement Fund (HFRRF), the pension fund for the city of Houston’s firefighters, announced Thursday that it had purchased bitcoin and ether for the defined benefit plan’s portfolio. The announcement describes: This investment marks the first announced investment in digital assets by a public pension plan in the U.S. According to Bloomberg, the Houston Firefighters’ Relief and Retirement Fund has $5.5 billion in assets and it invested $25 million in bitcoin and ether. The investment was facilitated by the New York Digital Investment Group (NYDIG), a bitcoin investment arm of Stone Ridge Asset Management. The HFRRF pension fund handles retirement benefits for more than 6,600 active and retired firefighters and survivors of firefighters. Active firefighters have contributed 9% of their salary to the fund since 2004, with the city of Houston contributing at least twice that amount. “We are excited to take this first step forward into the world of digital assets,” commented Ajit Singh, HFRRF’s chief investment officer. He elaborated: We have been studying digital assets’ transformative potential for some time … It became an asset class we could not ignore anymore. He continued: “This investment expresses our belief in the disruptive potential of distributed ledger technology for the development and democratization of value accumulation through disintermediation.” Singh was also quoted by Bloomberg as saying: “I see this as another tool to manage my risk … It has a positive expected return and it manages my risk. It has a low correlation to every other asset class.” The HFRRF chief investment officer preferred to invest in coins directly, rather than taking on risk associated with futures-related investments. He explained: “We didn’t want to get the synthetic exposure. We decided to go directly to the token. As more and more institutional adoptions happen, there will be more and more dynamics that develop for supply and demand. And having physical assets — actual tokens — gives us in the future the possibility of income generation potential.” Nate Conrad, global head of asset management at NYDIG, opined: This investment represents a watershed moment for bitcoin and its place in public pensions. Fiduciaries are increasingly aware of how even a small allocation to digital assets can make a big impact over time. Do you think more public pension funds will buy bitcoin and other cryptocurrencies? Let us know in the comments section below. View the full article

MCO2 is a carbon credit token traded by Moss.Earth. One MCO2 token is equivalent to one carbon credit. It is now possible to find this asset available on the largest exchanges on the planet, such as Gemini. The token goes through several processes to guarantee the security and reliability of the product. MCO2 Is the First Carbon Credit Based Token on Gemini The MCO2 token is an asset that makes the carbon credit market more democratic, secure, dynamic, and liquid. Carbon credits are no longer just an extra expense for companies that pollute, they are an asset that can be sold globally on international exchanges. By using blockchain and digital wallets, Moss.Earth have increased transparency in transactions and enhanced security in trading these assets. There are clear trends that strongly support market growth coupled with the entry of individuals and civil society organizations into the financial market. You can now buy and trade MCO2 on Gemini here. How Can I Contribute to the Improvement of the Planet? The MCO2 token democratizes carbon offsetting. Carbon credits are digital certificates issued by companies and environmental projects which can be sold to individuals and companies that either need to or want to mitigate their Greenhouse Gas emissions. The standard definition of a carbon credit is as follows: 1 carbon credit = 1 ton of CO2 emission that has been avoided at some point in the past. In other words, a carbon credit represents both: an amount of carbon dioxide (CO2) that a company or individual commits to not release or has avoided the release into the atmosphere; and an amount of CO2 emissions that has been avoided through environmental projects or sustainable activities. The carbon credits initiative values organizations that conserve and reforest the environment, which makes the carbon credit as a form of environmental protection even more advantageous. Of almost equal importance, the resources acquired for keeping the Amazon forest alive and standing means environmental organizations can improve the conditions of people in the communities, creating a positive impact on their lives and the region’s GDP. To learn more about the project visit the website, and follow the team on YouTube, LinkedIn and Instagram. You can now buy and trade MCO2 on Gemini here. This is a sponsored post. Learn how to reach our audience here. Read disclaimer below. Listen to the latest Bitcoin.com Podcast: View the full article

On Wednesday, just before bitcoin surpassed the digital asset’s all-time high (ATH), the crypto analyst known as “Techdev” says the “2-week chart looks strong and ready for much higher highs.” Just 26 days ago, Techdev said that “$200-300K bitcoin looks almost too programmed” and this week, the analyst noted that we are “nowhere near a top.” Bullish Forecasters Rejoice Over Correct Predictions — ‘$200-300K Bitcoin Looks Almost Too Programmed’ The leading digital currency bitcoin (BTC) has been on a tear during the last few weeks as it has continuously gained value week over week. It’s safe to say that September wasn’t the greatest month for BTC, and October was a complete reversal. Throughout bitcoin’s lifetime, traditionally the last three months of the year are notable times when BTC sees significant gains. 23 hours ago, on October 19, the notorious bitcoin analyst Plan B tweeted a checkmark after BTC tapped $63K on Tuesday, because of the prediction he made on June 20. At that time, Plan B said his “worst case scenario” BTC price prediction for 2021 (price/on-chain based)” would be: “Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K.” His correct forecast and checkmark tweet highlighting the $63K goal has been retweeted close to 5,000 times and the tweet has more than 30,000 likes today. Another crypto market analyst, dubbed Techdev, has been very bullish as well, telling his 88,700 Twitter followers what he expects for bitcoin’s future prices. Techdev Still Insists Bitcoin Is ‘Nowhere Near a Top’ 26 days ago on September 24, Techdev tweeted “$200-300K bitcoin looks almost too programmed” as he shared a chart of Fibonacci stats. On October 20, as bitcoin (BTC) continues to hold above the $64K handle, Techdev is still very optimistic. “[Bitcoin] 2-week chart looks strong and ready for much higher highs,” the analyst tweeted on Wednesday. “Expect RSI to peak around 93-94. Stoch RSI should be maxed and flat at that time as well. Both halfway there from July low and the $ increase per indicator value should accelerate from here. Nowhere near a top,” Techdev added. Techdev shared a tweet from another bitcoin proponent called “Crypto Caesar” who is also very bullish. The tweet stemmed from commentary Crypto Caesar made in the summer months when BTC’s price was much lower. “Nothing has changed on my previous opinion,” Crypto Caesar said about a week before Plan B’s ‘worst case scenario’ forecast this past summer. “I firmly believe we are still in a bull market. 64k was NOT the top (not even halfway!). Patience. HODL.” Anyone with access to a logarithmic BTC/USD chart that extends from the beginning of bitcoin’s first price point until today can clearly see the possibility of a “double-top” or “double-bubble” scenario. The 2017 bitcoin bull run did not have much of a double bubble run up and it was mostly a single-run parabolic jump toward $20K. However, in 2013, bitcoin (BTC) clearly had a double bubble, jumping over $200 per coin in mid-April 2013 and then diving to $70 per unit. After that dip in the spring, BTC surprised everyone when it reached a high of $1,250 per unit in December 2013. What do you think about Plan B’s correct prediction and Techdev’s current forecast that bitcoin is nowhere near a top? Let us know what you think about this subject in the comments section below. View the full article

The spot price of bitcoin smashed through the leading crypto asset’s all-time high (ATH) surpassing $66,000 per unit after the first bitcoin exchange-traded fund (ETF) was launched in the United States. The last time bitcoin touched an ATH six months ago on April 14, 2021, the price tapped $64,804 per unit. Bitcoin Records New All-Time Price High The fiat value of bitcoin (BTC), measured in U.S. dollars, has reached an all-time high. The price has touched $66,299 per unit on Bitstamp, surpassing the digital asset’s ATH captured six months ago. At press time, there’s $39.6 billion in trade volume dedicated to bitcoin (BTC) trading. Bitcoin’s market cap is $1.223 trillion and it is the sixth most valuable asset on the planet today. Bitcoin’s ATH follows the launch of the Proshares Bitcoin Strategy ETF (BITO) that was listed on October 19, 2021. The bitcoin exchange-traded fund is the first ETF ever to be approved in the United States and it’s based on bitcoin futures markets. Bitcoin’s greatest pair today is tether (USDT) commanding 59.97% of all BTC trades. This is followed by USD (14.99%), BUSD (4.61%), JPY (3.33%), EUR (3.20%), KRW (2.27%), and AUD (2.16%). The top exchanges today include Coinbase, FTX, Bitfinex, Bitstamp, and Kraken, respectively. Coinbase commands 20.25% of the BTC volume today and FTX captures 14.68%. Year-to-date, bitcoin (BTC) is up 456% in value and during the last 30 days, BTC has risen 37.8%. At current prices, bitcoin dominance is currently at 45.4% and ethereum (ETH) dominance is about 17.3%. Only 12 cryptocurrencies have outperformed BTC’s seven-day gains. Crypto assets like OKB, MATIC, and ZEC have seen gains above 19% this past week. Bitcoin’s hashrate has been hovering around 140 exahash per second and the network’s next mining difficulty change is 12 days away. What do you think about bitcoin smashing a new all-time high on Wednesday? Let us know what you think about this subject in the comments section below. View the full article

Amid ongoing sanctions, the government of Russia has been working to limit the country’s dependence on the U.S. dollar. The Ministry of Foreign Affairs now says it’s possible to partially replace the greenback in currency reserves and trade settlements with other currencies and even digital assets in the future. Foreign Ministry Official Sees Russia Acquiring Digital Assets to Reduce US Dollar Dependence In its efforts to counter the negative effects of expanding U.S. sanctions, the Russian Federation is putting an emphasis on “dedollarization,” Deputy Foreign Minister Alexander Pankin remarked in a recent interview with the Interfax news agency. The “purposeful work” aimed at limiting the influence of the U.S. dollar on the domestic economy and foreign trade operations is decreasing the “sanctions risks,” the high-ranking diplomat added. However, challenges associated with these sanctions still remain, and Pankin stated that Russia’s “settlements with major trading partners need protection and stability in the context of the currency used.” For the time being, Moscow is not facing sanction threats with euro settlements and transfers, but U.S. dollar payments. Pankin explained these go through U.S. banks and clearing systems which allow authorities in Washington to block any transactions they view as suspicious. In these circumstances, Foreign Minister Sergey Lavrov’s deputy thinks the expediency of further reducing the share of the dollar in the nation’s foreign currency reserves as well as its use in international settlements is beyond doubt. Russia can replace the U.S. fiat money with other national and regional currencies “and in the future, probably, with some kind of digital assets,” Pankin pondered. This would require significant efforts in bilateral, regional, and multilateral formats, noted Alexander Pankin, who oversees international economic cooperation at the Ministry of Foreign Affairs. Established models of cooperation between states and commercial structures would have to be reorganized and appropriate mechanisms to support the functioning of new settlement systems would need to be introduced, the government official elaborated. Pankin’s comments come after President Vladimir Putin warned Washington that “the United States is cutting the branch it is sitting on” by undermining the dollar for the sake of momentary political gain. Speaking with CNBC’s journalist Hadley Gamble, the Russian leader admitted that cryptocurrency has value and “the right to exist.” In the interview, published by the Kremlin last week, he stated that crypto can be used for settlements in the trade of oil and other energy resources in the future. Cryptocurrencies and related activities have been partially regulated with the adoption of the law “On Digital Financial Assets” which went into force this year, but Russia needs to further amend its legislation to ensure comprehensive regulation. While digital coins are viewed as money surrogates and prohibited as payment tools under current law (which affirms the ruble as the only legal tender), the government in Moscow has recently indicated it’s not planning to ban Russian citizens from acquiring cryptocurrencies. Do you expect Russia to add digital assets to its currency reserves in the future? Tell us in the comments section below. View the full article

Binance USD (BUSD) has become one of the fastest-growing cryptocurrencies in the world, with a variety of use cases and growing demand amid the continued growth of the crypto markets. A key component to BUSD’s success is its unwavering compliance to the world’s most stringent regulatory standards, ensuring safety and security for all of the stablecoin’s users. Stablecoins have emerged as major players in the crypto market this year, driven by user demand for flexible liquidity in fiat currency terms. These cryptocurrencies, whose market values are pegged to the worth of certain assets like the U.S. dollar, have also been important assets in the growth of decentralized finance (DeFi). There is $120 billion worth of stablecoins in circulation as of September 1, according to CoinMarketCap. Amid the rise in demand for stablecoins, various segments of the crypto industry have brought up questions about the veracity of the 1:1 peg of major stablecoins to their backing assets, like the U.S. dollar and other fiat currencies. After all, if the issuers of stablecoins are not able to show that each unit of their tokens can be exchanged for the equivalent amount of the backing asset, there will be serious doubts about the credibility of these tokens, resulting in adverse market effects. Therefore, when Binance launched BUSD with Paxos in 2019, utmost importance was put towards making sure that every unit of the stablecoin can be verifiably backed with U.S. dollars, therefore giving its users peace of mind and giving more credibility to a stablecoin industry beset by trust issues. BUSD: A Case Study of Stablecoin Compliance and Safety BUSD is a 1:1 U.S. dollar-backed stablecoin regulated by the New York State Department of Financial Services (NYDFS), issued by Paxos, a regulated blockchain infrastructure platform. Since then, BUSD has emerged as the third-biggest stablecoin in the world, with a market cap now above $12 billion and a user base of about 1.1 million people. As a result of BUSD becoming the stablecoin of choice for millions of cryptocurrency users, we see a number of characteristics that show the merits of having a stablecoin that has prioritized user safety and compliance to regulatory and public standards. 1. Actual, Audited, and 100% Cash and Cash-Equivalent Reserves As mentioned above, BUSD is one of few stablecoins in the world backed with actual cash. According to a current reserve report from Paxos, 100% of BUSD’s total market capitalization is backed by cash and cash equivalent reserves. The issuance of Paxos provides a glimpse of the lengths that Binance has gone to ensure that BUSD is an above-board crypto-financial product. BUSD is one of the few stablecoins that provides monthly audited reports of reserves. Everyone can independently verify at specific points in time that the entire supply of BUSD tokens is consistent with USD in reserve accounts at U.S. banks held and managed by Paxos. Ultimately, the audits and measures that are implemented to verify BUSD’s asset holdings solve one of the main concerns by regulators regarding the existence of actual reserves that back stablecoins. 2. Regulatory Trust and Insurance With stringent measures such as the aforementioned monthly audits, BUSD adheres to the highest compliance standards, particularly by NYDFS, regarded as one of the most stringent when it comes to compliance requirements. Why is having a regulator essential to the stablecoin business? In August 2020, BUSD became “Greenlisted” by the NYDFS, making it pre-approved for custody and trading by any of the NYDFS’ virtual currency licensees. Unlike most stablecoins that claim to be compliant, the BUSD business and its issuer Paxos are regulated by NYDFS, This means: -The value of each stablecoin token is tied directly to the value of the US dollar, and the amount of “reserve” dollars equal or exceed the number of stablecoins outstanding. -Regulators are overseeing the establishment and maintenance of reserves backing the stablecoins. -Reserves may only be held in the safest forms, such as FDIC-insured bank accounts and in short-term maturity US Treasury instruments. -Reserves are fully segregated from corporate assets, specifically for the benefit of token holders, and are held bankruptcy remote pursuant to the New York Banking Law. Regulatory oversight is important because it assures stablecoin users that the dollars underlying their stablecoins are secure and will be immediately available when they want them. The NYDFS ensures the Trust companies, like Paxos, and their individual tokens are following its strict rules at all times. 3. Growing Use Cases In less than two years since its debut, BUSD has become one of the fastest-growing cryptocurrencies while featuring a variety of utilities, from trading to lending and payments. Stablecoins like BUSD play a critical role in the world of decentralization and in providing a solid foundation for the continued growth of DeFi (decentralized finance). BUSD is widely used in Binance Smart Chain (BSC) and Ethereum when it comes to trading, lending, and other scenarios. According to the BSC Project, there are currently more than 400 decentralized applications that support BUSD. On April 21, 2021, the single-day transfer amount of BUSD reached a peak of $261 billion, across 737,000 transactions on BSC. The combination of ample regulatory compliance, trading volumes, and user interest in BUSD presents a case where private-driven financial innovation via blockchain technology can be pursued while staying compliant with user protection mandates stipulated by the world’s top regulators. Why Strive for Compliance? The rise in stablecoins has sparked discussions by regulators regarding the challenges they potentially pose to money markets. Making sure that each unit of a stablecoin can be exchanged for an equivalent unit of its backing asset is a matter of public interest, because deficiencies related to that characteristic can lead to general mistrust in the crypto markets. In the long term, the overall cryptocurrency industry suffers if these concerns aren’t addressed. With BUSD’s emphasis on compliance, we can safeguard the trust of both users and regulators in stablecoins, while opening opportunities for the private and public sectors to cooperate in establishing stablecoins as an important asset class in the global economy. When more stakeholders show acceptance to stablecoins, particularly trusted ones like BUSD, more avenues for growth opportunities open up. Ultimately, it takes global cooperation to realize crypto mass adoption, and therefore a better global financial framework. At Binance, we believe in facilitating this in a healthy way, through proactively collaborating with local regulators and leading the industry to a common destination: to benefit and protect users. In a recent virtual press conference, Binance CEO Changpeng “CZ” Zhao said, “Our view is that it’s great for the regulators to be coming in… to get to 10%, 20%, 80%, 99% [crypto] adoption.” Therefore, it is important for us to maintain BUSD’s status as one of the world’s safest and most compliant stablecoins, for the sake of long-term progress in the industry. This is a sponsored post. Learn how to reach our audience here. Read disclaimer below. Listen to the latest Bitcoin.com Podcast: View the full article

Both Ethereum 2.0 and Polkadot are promising sharding-based protocols overcoming the scalability challenges facing legacy blockchains. Although slightly different, together, the Relay Chain and Beacon Chain represent another significant leap forward, especially for interoperability. Partitioning the Problem: Sharing the Load via Sharding Scalability has been a hotly debated topic after networks bumped up against the limits over the last year. Yet, long before it entered the mainstream conversation, developers postulated several angles of attack. Despite the triumphant launch of layer 2 approaches in 2021, layer 1 sharding solutions have long been in the pipeline. When it comes to partitioned blockchain protocols, Polkadot and Ethereum 2.0 represent the most prominent names pursuing this scalability avenue. These partitions, or shards, are a means of executing transactions in separate shards along with a protocol to send messages between shards. Through sharding, both networks deliver an excellent solution to significantly increase network performance and capacity without increasing node hardware requirements or reducing the degree of decentralization. We can’t deny the fact that at the core technical level, Polkadot draws many references from Ethereum. However, when it comes to technology, especially how Polkadot and Ethereum 2.0 are applying the concept of sharding, there are several significant differences that developers and users should consider. For starters, all of the shards in Ethereum 2.0 have the same state transition function (STF), which provides an interface for smart contract execution. As such, contracts on a single shard can share asynchronous messages with other shards. The base layer (main chain) of Ethereum 2.0, referred to as the Beacon Chain, enables the execution of smart contracts and transactions via the eWasm (Ethereum Wasm) interface. By design, Ethereum 2.0 will support 64 shards, wherein each shard will represent a blockchain and transactions executing on that blockchain. Polkadot uses a different variation of sharding. The network has a main chain called the Relay Chain. Shards on the Polkadot network are called parachains, which can also execute parallel transactions, and are associated with the Relay Chain. Unlike Ethereum 2.0, which currently supports 64 shards, Polkadot currently supports 100 parachains (shards), and each of these parachains doesn’t rely on a single interface like ETH 2.0’s eWasm. Instead, each parachain can individually connect to the Relay Chain, giving developers on these parachains the flexibility to determine their own rules regarding how it changes state. Simply put, think of Ethereum 2.0’s Beacon Chain as a USB port and shards as USB cables. Only those shards that have the right shape of a USB cable can connect to the USB port. On the other hand, Polkadot’s Relay Chain serves as a universal socket, meaning all parathreads can seamlessly connect to it. Other than this, the governance process for Ethereum 2.0 is proposed to follow an off-chain model, which will require a hard fork. But Polkadot’s governance model is on-chain and enacted autonomously, giving it the ability to upgrade more seamlessly. Finally, the underlying validator selection mechanism for both also differs given that Polkadot offers strong availability and validity guarantees with a smaller number of validators per shard. A Glimpse Into the Future Based on the Present Development and implementation of Ethereum 2.0, also called Serenity, is currently in progress. At present, the Beacon Chain is live, bringing staking to Ethereum and laying the groundwork for future upgrades. However, the merger of Mainnet Ethereum with the Beacon Chain and the addition of Shard Chains will be gradually rolled out in phases. Forecasts are anticipating a 2022 launch, although large recent purchases of Ethereum mining equipment mean certain stakeholders aren’t convinced that timely release is around the corner. Meanwhile, as a next-generation blockchain project, Polkadot has garnered much attention since 2020. The platform, frequently dubbed the Ethereum Killer despite the tired nature of that overused trope, has established itself as a potential alternative that solves the scalability challenges of Ethereum. Polkadot’s testnet Kusama is already up and running on a similar sharding model to great success, following multiple crowdloans and millions of transactions processed, with several promising projects bidding for the limited parachain slots. Now, Polkadot parachain slot auctions are arriving in November as the project enters the fifth and final phase of its launch process, beating Ethereum to the sharding punch. While the sharding competition won’t necessarily result in a winner-take-all outcome, Polkadot is at least a couple of years ahead of Ethereum 2.0. Still, Ethereum’s vast ecosystem shouldn’t be discounted despite the interoperability aspirations of many eager projects bidding on Polkadot’s parachain slots. However, instead of viewing the two chains in competition for higher TVLs or more dapps, it’s better to frame the relationship within the context of added utility for the greater cryptocurrency ecosystem. It will be intriguing to see how both platforms interact once all Ethereum Improvement Proposals (EIPs) for Ethereum 2.0 have been implemented and Polkadot parachains are connected to the Relay Chain. Assuming everything goes according to plan, the networks can complement each other to deliver an interoperable foundation for next-generation decentralized apps (dapps) and decentralized finance (defi) protocols, supporting higher throughput, lower costs, and the scalability to support expanded blockchain use. Which will reign supreme — Polkadot or Ethereum? Let us know what you think in the comments section below. View the full article

The Ghanaian central bank is seeking to make its digital currency, the e-cedi, available to offline users, an official with the bank has said. Overcoming the Challenge of Limited Power According to Kwame Oppong, who heads fintech and innovation at the Bank of Ghana (BOG), the e-cedi is also expected to facilitate transactions without the need for power or connectivity. “Financial inclusion is limited by the availability of connectivity and power. What we hope to be able to do – and we’re one of the people pioneering this – is that the e-cedi would also be capable of being used in an offline environment through some smart cards,” Oppong is quoted explaining. Although a majority of Ghanaians — 84% of the population — is thought to have had access to electricity in 2019, according to World Bank Data only half of the country’s population had access to the internet back then. It is this lack of internet access that has compelled the Bank of Ghana to seek a solution that overcomes this challenge. As previously reported by Bitcoin.com News, the Ghanaian central bank had planned to launch the e-cedi in September. However, it is still unclear if the digital currency has been rolled out. Similarly, at the time of publishing Bitcoin.com News has not received a response from a member of Ghana’s blockchain association concerning the status of the e-cedi. Is it possible for the BOG to enable offline transactions for its digital currency? Tell us what you think in the comments section below. View the full article

Novi, Facebook’s digital wallet, will launch a pilot program to test the functionality of the service in two countries: Guatemala and the U.S. The test will allow Novi to test all of its main functions and to evaluate what things need to be improved before launch. Novi will use pax dollars as the main currency during the test, but David Marcus, head Of Facebook Financial, stated they still plan to launch with Diem once it gets greenlighted by regulators. Novi Launches Test Pilot Sans Diem Novi, Facebook’s digital wallet, is now running a test pilot program of its wallet in two countries: Guatemala and the U.S. David Marcus, head of Facebook Financial, stated this “test pilot would test core feature functions” and their operational capabilities in customer care and compliance. Marcus also stated that the remittance corridor between these two countries was very important because most Guatemalans lack access to financial services, but have access to a smartphone. However, the pilot is not using diem, the formerly Facebook-backed cryptocurrency. Instead, Novi chose to launch the pilot using pax dollar, an already established stablecoin supported by Paxos, a New York-based financial services company. Coinbase was selected as custodian of the funds for the pilot, to keep users’ funds secure through its custody platform. Diem Use Still on the Table Although the pilot program is not using diem as the transactional asset of the platform, Marcus clarified that Novi has the intention of leveraging the crypto in the near future. About this, he stated: I do want to be clear that our support for Diem hasn’t changed and we intend to launch Novi with Diem once it receives regulatory approval and goes live. We care about interoperability and we want to do it right. So, Novi has not abandoned diem, and is just waiting for the project to overcome the regulatory hurdles it has faced since its inception. However, this test pilot program confirms the interest that Novi has in establishing itself as a serious player in the payments market. Marcus stated that, ultimately, this was the prime focus and that the objective was to offer free person-to-person payments, and profit from merchant interactions, once Novi has a solid customer base. What do you think about Novi’s test pilot program? Tell us in the comments section below. View the full article