Senators confirmed that Bitcoin and Ether will be classified as commodities and regulated by the CFTC.
Self-Regulatory Organizations Growing Alongside New U.S. Crypto Regulation
SROs can eventually provide “connective tissue” between the crypto industry and government as U.S. regulatory infrastructure forms.
Russian crypto volume across major exchanges plunges by 50%
Despite an increase in economic sanctions on Russia, the amount of crypto being purchased in rubles across major exchanges continues to fall.
Crypto is not criminal: US Secret Service launches ‘crypto awareness hub’
The educational website shares the Secret Service intends to combat the “illicit use of digital assets” and provide “public awareness information.”
Bank of America says stablecoin adoption and CBDC is ‘inevitable’
A recent note from Bank of America analysts said that a CBDC would differ from digital currencies currently available because it would be the liability of the Federal Reserve, not a commercial bank.
This Crypto Collaboration Aided Health Staff Beaten By Venezuelan Regime
As Venezuelans have struggled to survive the pandemic during times of dictatorship, the crypto company Circle collaborated last year with the countries’ opposition to financially aid healthcare workers who were abandoned to a broken-down system with almost no proper medical equipment and a discouraging $15 a month salary.
Today $1 equals 45,000,000,000,000,000 bolivars –although it has been devalued to look like 4,5 VES–, a cipher too large to comprehend, much like the general panorama. The basic food basket is calculated over $300 a month, but the minimum wage is roughly $7, and last year many doctors were making as much a $15 a month.
Financial Times published a report where they describe the methods used by the interim president to bypass the Maduro regime’s tight grip that would not allow citizens to receive any type of external aid.
As Gideon Long’s report remembers, the U.S. sanctions on Venezuela had made the situation worse for its citizens with the state funds frozen in U.S bank accounts, but the politicians who oppose the government –with Guaidó recognized by Washington as Venezuela’s legitimate president– found leverage in that by managing to access the accounts after convincing the US Treasury of doing so.
But how would they get the money to the health carers’ hands if the government was extremely against it? Legitimized or not, Venezuela is still under Maduro’s control, so the banks were not a possibility, but stablecoins were. During the bumpy road, the crypto era opened a pathway that wouldn’t have been there a decade ago.
Circle, U.S.–based fintech innovator Airtm and Juan Guaido’s team collaborated in what they claim to be the first “use of stablecoins for foreign aid“, the “only viable option available”.
Circle says on its website: “we were able to put in place an aid disbursement pipeline that leveraged the power of USDC — dollar-backed, open, internet-based digital currency payments — to bypass the controls imposed by Maduro over the domestic financial system and put millions of dollars of funds into the hands of people fighting for the health and safety of the people of Venezuela.”
Maduro’s regime did its best to block the Airtm platform, where healthcare workers would receive the aid, but Guaidó’s team published a guide on how to use the Canadian company TunnelBear’s VPN, which provided free services for a while.
Many countrymen have said that not much changed for Venezuelans either way but at the same, the landmark that collaborations like this ones create show the possibilities that the crypto era we are entering can offer in situations of despair. It’s not all about the market, it’s also about freedom.
Related Reading | Venezuelan Airport To Accept Payment In Bitcoin
Inside The Effects Of Crypto
As the countrymen were already in a heartbreaking situation, the times of Covid came around and Venezuela entered deeper despair. Numbers on deaths cannot be officially traced because the regime covers them up to make itself look better, and all we are left is with the abandoned voices of its victims.
A New York Times report on childbirth in Venezuela amidst a shattered system.
Guillermo Herrera Gallo, a Venezuelan doctor that currently works for the Red Cross in the country, was one of the health workers to receive the bonus. He made comments to newsBTC about his personal experience regarding the financial aid through the decay of Venezuela’s health system.
Herrera said that the aid didn’t make much of a difference for the lives of doctors, but he did see relief in the eyes of nurses who could finally afford a better meal and supplies for their children. He thinks that the method and platform used were strongly beneficial when facing a national currency devaluation that has become useless and was pleased with how secure using AirTM feels like.
Circle adds that this event remarks “the freedom of people to transact, even in the face of brutal dictatorships. It also marks a historic moment where in order to execute on foreign aid objectives, economic and political leaders have turned to stablecoins. ”
Related Reading | How Bitcoin is The Answer To Venezuela’s Stuck-At-Sea Oil Supply
Crypto total market cap down to $2,2 trillion in the daily chart | Source: TradingView
37% Of U.S. Investors Decline To Liquidate Cryptocurrency Assets in Bearish Situations
Recent research reveals that US cryptocurrency investors have an average allocation of $1,107 in digital assets. About 37% of the investors confessed non-liquidation of their crypto holdings even for important bills or other payments.
However, there’s this discovery that Elon Musk has a great influence on the crypto-related decisions of most respondents.
A survey of 1,000 US crypto investors by GamblersPick, a betting platform, displayed a shocking revelation. 37% of these holders won’t dispose of their assets irrespective of the circumstance. Furthermore, 51% confirmed that luxury purchases wouldn’t be too enticing for them to opt for cash out.
Also, the survey took a critical examination of the different generations of crypto investors. It reveals that the Baby boomer and Generation Z groups have the largest and the least investment in cryptocurrency, respectively.
In addition, the male forks have more interest in digital investment than women, with an average of $1,940 worth of cryptocurrencies. On the other hand, the statistics for the female is at a median value of $1,375 worth of digital assets.
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From its survey, GamblersPick discovered an increase in the demand for digital assets among US investors. This recent surge in demand even prompts people to borrow cash from family and friends to invest. It reflects in the results of the use of credit cards in purchasing cryptocurrencies by every fourth respondent.
The investors revealed that they plan to increase their cryptocurrency investments by adding an average of $1,645 within 12 months. The statistics have men on the lead again with the proposal of increasing with $1,988 while women plan for $1,100.
What Influences Decisions Of Cryptocurrency Investors?
Furthermore, the research reveals the reason behind the recent increase in interest in crypto investments. Most of the respondents, amounting to about 75%, confirmed their confidence in a future surge in the value of digital assets. Moreover, while 24% see cryptocurrency as a means of gaining great returns, 32% use it to diversify their portfolio.
The cryptocurrency market is back on track after a bearish pullback | Source: Crypto Total Market Cap on TradingView.com
Additionally, about 21% of the participants used cryptocurrency as a hedge over inflation that emanates from the swindle in the economic condition. The recent COVID-19 pandemic, as well as the massive national currency print-out, are contributory factors.
Related Reading | Solana Continues Bullish Trend, Becomes The 10th Largest Cryptocurrency
Also, online forums and social media have a prominent influence on cryptocurrency-related decisions and moves on U.S. investors. Among them is Reddit that topped the list having about 34% influential power.
Others include Twitter, Youtube, and Facebook, with their influences rated as 26%, 23%, and 16%, respectively. When it comes to influences from individuals, a man stands out among others. His influence is even greater than those from the mentioned companies above.
He is Elon Musk, the CEO of Tesla, a popular electrical car company. 35% of the research respondents confessed that their choices in digital assets are based on Musk’s statements, opinions, and tweets.
Other influencers are Warren Buffett ranking second and Snoop Dogg, the rap star, ranking third. They have an influential rating of 9% and 7%, respectively.
Featured image from Pixabay, chart from TradingView.com
A trade war misstep? China is vacating crypto battlefield to US banks
Why is China forsaking cryptocurrencies at the same time that legacy U.S. banks, long wary of crypto, appear to be discovering its virtues?
Crypto crash has legislators considering new regulations to protect consumers
U.S. regulators are growing concerned in a week that has seen BTC lose a quarter of its value
Coinbase’s COIN stock reference price set at just $250, as 1,700 staff get free shares
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Iowa House approves bill to legally recognize blockchain smart contracts
The bill would give legal recognition to transfers and registrations made through blockchain smart contracts.
Bitcoin Slumps to $31K on Sell-Off in US and Europe
Uncertainty is leading many to take short-term profit, according to the “Coinbase Premium” indicator.
US Regulator to Shake Up Banking With Federal Charters for Payment Firms
Acting Comptroller of Currency (and former Coinbase exec) Brian Brooks is spearheading the move to let payment firms operate as banks across state lines.
A WeChat Ban Should Be the Moment for Decentralized Tech. But It’s Not.
President Trump’s threat to ban WeChat could disrupt the communication of millions of people. Decentralized technology is one solution, but will people really use it? Not necessarily, industry watchers say.
Cryptocurrency Exchange Kraken Adds New Banking Option for US Users
Kraken’s U.S. customers can now make wire transfers from their accounts at MDV Bank to fund purchases of cryptocurrency.
E-Gold Claims US Officials Buried Key Report in 2008 Landmark Crypto Ruling
A court filing alleges federal government suppression of an OFR review led to crypto businesses being defined as money transmitters.
JPMorgan Analysts: Bitcoin Is Likely to Survive (as a Speculative Asset)
Bitcoin proved itself a resilient asset, if not a stable or useful currency, during March’s global market meltdown, JPMorgan analysts told investors.
UK Trade Negotiators Eye Blockchain Provisions in Coming US Trade Talks
The U.K.’s trade negotiators want to set the pace for global blockchain regulation in its upcoming free trade talks with the United States.
Ohio Lawmakers Pitch Their State As a Future Hub for Blockchain
Lawmakers in the U.S. state of Ohio say they are interested in blockchain – but they’re still figuring out how to put that enthusiasm into action.
US Official Says ‘Congressional Attention’ Needed on Privacy Cryptos
U.S. Secret Service are looking at privacy-centered cryptocurrencies.