Crypto Guides, Knowledge & Insights

Federal Reserve Chairman Says Russia-Ukraine Conflict Highlights Need For Crypto Regulation

Jerome Powell – Chairman of the Federal Reserve – recently testified in front of the House Financial Services Committee on the state of the economy, and future monetary policy. Given the various sanctions placed on Russia during its conflict with Ukraine, he said the conflict “underscores” the need for crypto regulation that hes advocated for months.　　Maintaining Effective Sanctions　　Following his testimony on Wednesday, Powell was asked whether Russia could potentially use cryptocurrencies to bypass the slew of sanctions recently placed on the nation.　　Following its announcement of “special military operations” in Ukraine, Western nations have taken major measures to damage Russias economy through a trade war. These include “export blocks on technology” from the US to Russia, alongside a massive cutoff of Russian banks from SWIFT.　　“[The Ukraine-Russia conflict] underscored the need for Congressional action on digital finance including cryptocurrencies,” Powell responded. “We have this burgeoning industry which has many parts to it, and there isnt in place the kind of regulatory framework that needs to be there.”　　Since cryptocurrencies like Bitcoin allow for peer-to-peer cross-border transactions, they are difficult for governments to enforce trade restrictions on. Western allies are already raising concerns over how Russians may take advantage of them during the conflict,

2022-03-03Deep Dive

Digital Ruble Likely To Help Russia Move Away From US Dollar, Economists Say

Under pressure from unprecedented Western sanctions, Russia‘s increased likelihood of defaulting on its foreign debt payments have economists eyeing the role of the digital ruble in reshaping the country’s economy.　　Western nations have launched unprecedented sanctions against Russia in recent days, leading to an increased likelihood that the country will default on its foreign debt obligations, the Institute of International Finance (IIF) said Monday.　　In a report Monday, the institute said its economists expect “the cumulative effect of sanctions on the Russian economy to be strong, leading to a sizeable contraction of output this year.”　　Russia‘s central bank more than doubled interest rates to 20% Monday in an attempt to limit inflation and ruble depreciation. More than half of Russia’s foreign exchange reserves are held in countries that have imposed sanctions and frozen assets, limiting the central banks options.　　“If we stay here and [the situation] escalates, then default and restructuring is likely,” said Elina Ribakova, the IIFs deputy chief economist, told reporters Monday.　　Russia has been in the process of de-dollarization since 2014, the IIF said. The Bank of Russia has reduced the share of its reserve assets in US dollars and its holdings of US Treasurys significantly, with gold now surpassing US dollars

2022-03-02Deep Dive

Ukraine ‘Marked an Inflection Point’ for Bitcoin as an Asset, Analysts Say

Bitcoins price jump is an indication that the cryptoasset could be transitioning from a risk-on asset to a risk-off asset, according to market participants, though movements in the coming weeks will shed more light on whether or not this is a long-term trend.　　The price of a bitcoin was roughly $43,900 at 11:30 am ET, up 7% in the last 24 hours. The price had increased nearly 19% and 15% over the last seven days and 30 days, respectively, data showed at the time.　　“I see bitcoin transitioning from a risk-on to risk-off asset, and so far in 2022, the crypto has made good progress on this trajectory,” said Mike McGlone, senior commodity strategist at Bloomberg Intelligence.　　Bitcoins price initially plummeted last week as Russian troops invaded Ukraine, suggesting a stronger correlation with tech stocks than it does with gold or other safe-haven assets.　　But industry watchers said the price rebound could prove a view by some investors that bitcoin remains a hedge against inflation or market uncertainty.　　“When freedom and individual liberty are threatened, the price of bitcoin goes up,” said Antoni Trenchev, co-founder and managing partner of Nexo.　　“Alongside the overselling in the market over the previous few weeks, a rebound was inevitable.”　　Bitcoin is

2022-03-02Deep Dive

Ukraine Now Takes Polkadot, Says It Will Accept Other Coins Soon

Ukraine Posts DOT Address, Receives First Polkadot Donations　　In the face of an ongoing military assault by the Russian army, Ukrainians have offered crypto users around the world another option to support their cause. Early on Tuesday, the Ukraine Twitter account published a DOT address along with a statement welcoming polkadot donations.　　The post expresses gratitude on behalf of the Ukrainian people for the funds donated by the global crypto community. It also reveals that support for more cryptocurrencies will be introduced in the near future.　　The people of Ukraine are grateful for the support and donations from the global crypto community as we protect our freedom. We are now accepting Polkadot donations too: $DOT: 1x8aa2N2Ar9SQweJv9vsuZn3WYDHu7gMQu1RePjZuBe33Hv.　　More cryptocurrencies to be accepted soon.　　— Ukraine / Україна (@Ukraine) March 1, 2022　　The announcement comes after Gavin Wood, co-founder of Ethereum and creator of Polkadot, tweeted on Sunday that if Ukraine provided a DOT address, he would send $5 million in the cryptocurrency.　　If you post a DOT address Ill personally contribute $5m.　　— Gavin Wood (@gavofyork) February 27, 2022　　On Tuesday, he tweeted a transaction showing the transfer of 298,367 DOT to the wallet, bringing the total deposited amount to over $5,8 million. Prior to his donation, the balance was

2022-03-02Deep Dive

Coinbase 'Will Not Institute a Blanket Ban' on All Transactions Tied to Russian Crypto Addresses

Coinbase, Coinberry, and Kucoin Follow Binance‘s and Kraken’s Decision to Refuse ‘Sabotaging Ordinary Russian Users’　　On Tuesday, reports indicate that the Russian invasion has escalated after peace talks at the border between Ukrainian and Russian officials failed. A 40-mile military convoy is surrounding the capital of Kyiv and reports show that “Kharkiv has become a key battleground.” Meanwhile, after the vice prime minister of Ukraine asked digital currency exchanges to “sabotage ordinary users,” a number of exchanges have released statements.　　Bitcoin.com News reported on Binance and Kraken explaining that they will not blanket ban ordinary Russian users. Binance explained to CNBC that to “unilaterally decide to ban peoples access to their crypto would fly in the face of the reason why crypto exists.” Following the statements from Binance and Kraken, representatives from Coinbase, Coinberry, and Kucoin told vice.com contributor Maxwell Strachan how the three firms plan to handle such requests.　　A spokesperson from Coinbase (Nasdaq: COIN), told Strachan that a request to ban all Russian customers would harm “economic freedom.” “At this time, we will not institute a blanket ban on all Coinbase transactions involving Russian addresses,” Coinbase said in an email sent to vice.com. “Instead, we will continue to implement all sanctions

2022-03-02Deep Dive

Bitcoin is now a top 15 currency as it surpasses Russian Ruble

Bitcoin has become one of the most valuable currencies globally after overtaking the Russian ruble.　　The invasion of Ukraine has sent Russian currency tumbling to record lows, and Bitcoin is profiting from that. This followed its sharp recovery after it fell to $35k after news of the invasion broke out.Bitcoin is more valuable than Russian Ruble　　With an over 17% increase in the last seven days and a 13% surge in the past 24 hours, Bitcoin has become part of the 15 most valuable currencies globally by market cap. It surpasses the fiat currencies of nations such as Saudi Arabia, Mexico, Thailand, Sweden, and Israel.　　The fall in the Russian ruble against Bitcoin and US dollars came after some Russian financial institutions were cut from SWIFT. The rubles value against the dollar reached ₽108 on Monday, a significant rise from the ₽83 the week earlier.　　One Bitcoin also started trading around ₽3,820,000, the highest it has been so far this year.　　Being banned from SWIFT also means that the demand for rubles has fallen significantly among other countries. Although the Bank of Russia increased its key rate to 20% from 9.5%, this hasn‘t stopped the currency’s free fall.　　Bitcoin is now number 14 on the list

2022-03-02Deep Dive

KPMG Canada buys an NFT after investing in crypto

KPMG in Canada announced that it has completed the purchase of a digital art NFT from the World of Women collection.　　“This acquisition reflects our belief not only in the continued growth of NFTs…”　　Managing Partner, Advisory Services, Benjie Thomas said about the buy. He added that NFTs enabled organizations to engage with their customers in unique ways and allowed secure digitization of assets.　　“There are numerous use cases for NFTs. We are already seeing organizations from retailers and sports leagues to auction houses, celebrities, and not-for-profits use NFTs to market their brand, recruit talent, create value, raise awareness for causes, and connect with customers. ”　　KPMGs cryptoassets and blockchain services co-leader Kareem Sadek said. He is also bullish on web3 and believes it will change how people interact with brands, socialize and trade digital assets.WoW NFT Collection　　The WoW, or World of Women, community aims to bring more people, especially women, into the NFT space and build a more inclusive web3 platform. The organization supports women-focused and ecological causes around the globe through charity.　　Their first NFT collection was launched in July 2021 and the second one is slated for 2022.　　KPMG in Canada reportedly paid 25 ETH, or roughly $70,000, for Woman #2681, which is

2022-03-02Deep Dive

Here’s why Terra (LUNA) recorded a 78% gain in February

Terra (LUNA) was one of the best-performing assets in February. This was when the crypto market witnessed one of its most volatile periods as the political tensions in Ukraine and Canada negatively affected the industry.Terra rose by 78% in February　　According to available data from CryptoSlate, Terras value rose by around 78% during the month, trading for as high as $94 at the peak of its green run.　　To put this in perspective, its more illustrious rivals like Bitcoin and Ethereum only saw their values rise by 12.25% and 9%, respectively. Other smart contract-enabled platforms like Solana and Avalanche saw theirs increase by 3.9% and 22%.　　Data from Santiment revealed that the mentions of LUNA also rose to a historic high in February. According to this metric, there is a growing interest in the digital asset, which can be seen in the meteoric rise of TerraUSD (UST), an algorithmic stablecoin based on the network.　　USTs current market cap has surpassed $13 billion. Its circulating supply increased by almost 15% within last month from 11.26 million on February 1 to nearly 13 million as of the end of the month.　　Judging by this, there are indications that Terra could be on its way to beating its

2022-03-02Deep Dive

Ukraine Conflict: The U.S. Moves To Block Russia’s Crypto Access As Sanctions Intensify

Recent reports reveal the US government is currently in talks with some of the biggest US-based crypto companies on ways to restrict Russia‘s access to crypto services. The move comes as the latest in a series of significant steps taken by the White House and aimed at deterring Russia’s aggression.　　Crypto.com, Binance, Kraken, and Bittrex are some of the biggest crypto exchange service providers in the country with strong regulatory ties to the US market. These exchanges, and other crypto service providers, will be the focus of the US government to limit undue profit exploitation from frantic Russian users.　　Last week, foreign policy experts had warned that the Russian government had expected a flurry of Bidens sanctions and will look to circumvent them using the power of crypto. As the conflict drags into its fifth day and the outcome of a delegate meeting in Belarus fails to reach a ceasefire, Russia continues to bear the brunt of a flurry of international sanctions targeting its financial services and access to foreign investment.　　At the moment, many of Russias top energy and finance companies have been cut off from global deadlines with a list of assets allegedly linked to Vladimir Putin, targeted for seizure. The

2022-03-02Deep Dive

MIT includes Ethereum’s Proof-of-Stake in 2022’s top 10 breakthrough technologies

The Massachusetts Institute of Technology (MIT) included Ethereums Proof-of-Stake (PoS) consensus algorithm in its 2022 technological breakthrough list.　　Posted in the MIT Technology Review, the algorithm ranks 6th in the list containing 10 technological use cases, including COVID-19 variant tracking, compact fusion reactors, and long-lasting batteries.　　MIT sees Ethereum 2.0 as a significant technological breakthrough　　The consensus algorithm that will take Ethereum into a new era has ranked pretty high in the eyes of MIT, which published its annual list of 10 breakthrough technologies.　　According to the MIT Technology Review, Ethereums Proof-of-Stake (PoS) consensus algorithm ranks 6th out of 10 and stands out against other PoS solutions from Cardano, Solana, and Algorand.　　Proof-of-Stake, especially the algorithm developed for Ethereum, offers a way to set up and run a blockchain network without requiring so much energy. The shift to PoS has been projected to cut the networks energy use by 99.95%, making it the most sustainable large-cap network on the market.　　All of the “breakthrough technologies” included in MIT‘s annual list share the same characteristic—the ability to bring fundamental changes to their respective industries. Ethereum’s PoS algorithm is no different.　　The MIT Technology Review believes that Ethereums Proof-of-Stake blockchain could set the stage for wider adoption of energy-saving

2022-03-02Deep Dive

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