Crypto Guides, Knowledge & Insights

FDIC Makes Crypto Evaluation a Priority This Year

The U.S. Federal Deposit Insurance Corporation (FDIC) has named the evaluation of crypto assets a priority this year. “The rapid introduction of a variety of crypto-asset or digital asset products into the financial system could pose significant safety and soundness and financial system risks,” the FDIC said.　　 Crypto Evaluation Named a Priority for FDIC　　The U.S. Federal Deposit Insurance Corporation (FDIC) announced Monday that Acting Chairman Martin J. Gruenberg has released the FDICs priorities for the coming year.　　The FDIC is an independent agency created by the U.S. Congress to maintain stability and public confidence in the nations financial system.　　One of the priorities is to “evaluate crypto-asset risks,” the announcement details, elaborating: The rapid introduction of a variety of crypto-asset or digital asset products into the financial system could pose significant safety and soundness and financial system risks.　　“It is imperative that the federal banking agencies carefully consider the risks posed by these products and determine the extent to which banking organizations can safely engage in crypto-asset-related activities,” the agency stressed.　　“To the extent such activities can be conducted in a safe and sound manner, the agencies will need to provide robust guidance to the banking industry on the management of prudential and consumer

2022-02-09Deep Dive

Zimbabwe's Central Bank Exploring CBDC, Reiterates Opposition to Cryptocurrencies

Zimbabwes central bank, which has expressed its opposition to cryptocurrencies in the past, announced yesterday it is presently exploring the feasibility of rolling out its own central bank digital currency (CBDC). The bank also said its regulatory sandbox continues to garner interest.　　CBDC Roadmap　　The Zimbabwean central bank, the Reserve Bank of Zimbabwe (RBZ), has reiterated that it prefers a central bank digital currency (CBDC) to cryptocurrencies, in its latest monetary policy statement. It adds it is now “actively exploring the feasibility of adopting a Zimbabwean CBDC including specific design considerations.”　　According to a statement released by John Mangudya, the banks governor, the RBZ is already developing a roadmap for its CBDC. The statement reads:　　“In this context, the Bank is developing a clear roadmap for adopting CBDC, encompassing the feasibility and assessment stage currently taking place, policy design stage based on results of the feasibility study and implementation modalities.”　　The RBZ added that it will be issuing periodic updates on the progress of the CBDC program.　　Fintech Regulatory Sandbox　　Meanwhile, in the monetary policy statement, the RBZ also revealed that its fintech regulatory sandbox, which was launched in March 2021, has received “112 registrations on the online portal and a further 31 applications at various stages.”

2022-02-09Deep Dive

New tax proposal in Kazakhstan could push crypto miners out

Kazakhstan may soon prove to be a hostile location for crypto miners as the Asian countrys government has proposed a hike in its electricity tariff and taxes for crypto miners.　　Kazakhstan proposes harsh crypto mining taxes　　Kazakhstans First Vice Minister of Finance, Marat Sultangaziyev, recently made a proposal to see the government increase the electricity tariff by 335%. If this is accepted, it means that crypto miners in the country would no longer pay a flat rate of $0.0023 per kWh; instead, the electricity rate would now be $0.01.　　His proposal also included a tax on mining equipment. According to his proposal, crypto mining equipment should be taxed the same way casinos are. Casinos are taxed through the tax-per-video card on each table they run, irrespective of their mode (active or not active).　　Currently, the country‘s value-added tax (VAT) exempts crypto mining hardware from its list. However, Sultangaziyev’s proposal would see mining hardware now also being taxed.　　If one takes the number of crypto mining equipment required to mine a digital asset successfully and the current tax proposal into consideration, Kazakhstan, in no time, would become a very less attractive option for crypto miners.　　Kazakhstans crypto mining landscape　　Kazakhstan, because of its stable and cheap energy supply,

2022-02-09Deep Dive

Ripple’s 2022 outlook: Crypto is ‘the new normal in finance’

In 2021, the introduction of new Central Bank Digital Currency (CBDC) initiatives, the intensification of policy and legislative talks, and the increased adoption by established institutions all helped crypto and blockchains sustain a rise into traditional financial markets.　　In particular, a constant stream of new entries into the space, with broader acceptance for crypto developments and enhanced usefulness, are expected in 2022, according to Ripples leadership.　　Managing Director of APAC .. Achieving this interoperability will be key to breaking down the barriers for broader crypto adoption.” 　　It appears for the foreseeable future, these technological obstacles will serve to emphasize the need for cross-chain interoperability in order to meet the rising demand from developers.Regulators to play a greater role 　　As a result of the rapid rise in popularity of NFTs and CBDCs, as well as interest from traditional financial institutions in cryptocurrency, regulators are also anticipated to play an increasingly important role in 2022. 　　Regulatory oversight remained inconsistent among countries and regions despite an increase in activity over the last year.　　On the whole, the strengthening of regulations is crucial in instilling trust in businesses to join the cryptocurrency market or cooperate with crypto providers.　　Its worth noting that Finbold recently reported US crypto lobbying

2022-02-08Deep Dive

High profile lawyer Tony Buzbee accepts Bitcoin for his $27-million mansion in Houston

Given the growing adoption of crypto, more people are using to buy and sell property in digital currency. So if you are a Bitcoin millionaire looking for extravagant living quarters in Houston, Tony Buzbee has an offer for you. 　　Tony Buzbee, the high-profile lawyer and former mayoral candidate, has put his house in Houston for sale and is open to accepting Bitcoin (BTC) as a form of payment, according to the initial listing on the Douglas Elliman Real Estate website. 　　The $27.5 million price tag firmly places it as one of the most expensive house listings in the city. Located in the upscale River Oaks neighborhood in the enclave of Country Culb Estates, it boasts a whopping 12,000 square feet living area with five bedrooms, each with its own bath, five wood-burning fireplaces, a gym, a movie theater, a game room, library, spacious underground wine cellar and a garage fit for six cars. 　　What sets this luxury listing apart from other high-end offerings is specified in property agent Beth Cassidys description of the space, adding casually at the very bottom: “Bitcoin accepted as a form of payment.”　　Buzbee purchased the home in 2013 with his then-wife Zoe and paid in cash,

2022-02-08Deep Dive

Stablecoins total market cap just surpassed $150 billion

The adoption of stablecoins, digital assets whose values are pegged most commonly to the U.S. dollar, is spreading by the day as more and more private users and institutions appreciate the benefits of these tokens.　　As reported in a blog post by researchers Kyle Waters and Nate Maddrey at Coin Metrics, analyzing recent on-chain trends in stablecoin activity, the total market cap of all stablecoin taken together surpassed the $150 billion mark on Monday.　　Total value settled with stablecoins by year.　　Just one month into 2022, over $500 billion has been settled with stablecoins. In 2021, total stablecoin transfer volume didnt cross $500 billion until mid February, and in 2020, it took stablecoins until October before passing $500 billion in total value settlements. Going further back in time, the total value settled in stablecoins in 2022 is already double the entire year of 2019.Stablecoins total supply has increased dramatically　　According to the report, the main reason why stablecoins are handling more economic throughput is because their total supply has increased dramatically. The total supply of stablecoins is now slightly above $150 billion, a new record and a sharp contrast from 2020.　　The largest stablecoins by total supply are mostly issued and backed by third parties.

2022-02-08Deep Dive

Tesla Holding Bitcoin Worth $2 Billion-Sees Crypto as Both Investment and Liquid Alternative to Cash

Tesla Has $2 Billion in Bitcoin　　Tesla filed an annual report with the U.S. Securities and Exchange Commission (SEC) Friday.　　“We continue adapting our investment strategy to meet our liquidity and risk objectives, such as investing in U.S. government and other marketable securities, digital assets and providing product-related financing,” the company wrote, adding:　　The fair market value of our bitcoin holdings as of December 31, 2021, was $1.99 billion.　　The report explains that Tesla bought $1.5 billion worth of bitcoin in early 2021 and later accepted the cryptocurrency as a form of payment for certain products in some regions. However, the electric car company suspended accepting BTC in May last year. In October, Tesla told the SEC that it may restart accepting cryptocurrencies.　　Tesla‘s latest financial statement shows that the company’s “carrying value” of its bitcoin at the end of December was $1.26 billion, which reflects cumulative impairments of $101 million. Tesla also “had $17.58 billion of cash and cash equivalents” as of Dec. 31. The company noted:　　In the year ended December 31, 2021, we recorded approximately $101 million of impairment losses resulting from changes to the carrying value of our bitcoin and gains of $128 million on certain sales of bitcoin by us.　　The electric

2022-02-08Deep Dive

Rich Dad Poor Dad's Robert Kiyosaki Says the Fed and Treasury Are Destroying the Dollar, Advises Sav

Robert Kiyosakis Warning and Advice　　Robert Kiyosaki, the author of Rich Dad Poor Dad, tweeted this week that the Federal Reserve and the U.S. Treasury Department are “destroying the dollar.”　　Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries.　　Kiyosaki wrote, “There are a million paths to financial heaven and a billion paths to financial hell,” adding:　　Fed and Treasury [are] destroying the dollar sending billions of dollar savers and uninformed to financial hell. Go to financial heaven. Save gold, silver, and bitcoin.　　This is not the first time the famous author has warned about the Fed and the Treasury hurting the economy and individual investors.　　In December last year, Kiyosaki tweeted a warning that the Fed and U.S. President Joe Biden are “pushing fake inflation.” He predicted an imminent, massive crash that will be followed by a depression.　　Kiyosaki also said in October last year that Biden and the Fed are “ripping off poor people,” reiterating that the U.S. is sliding into a depression. “Inflation rips

2022-02-08Deep Dive

Technical Analysis: SHIB Climbs 50% Higher, as Meme Coin Hits $16 Billion Market Cap

Biggest gainers　　On Monday, bitcoin (BTC) and ethereum (ETH) both reached multi-week highs, with DOGE and XRP also trading over 10% higher, however, none of these came close to todays big gainer.　　Shiba inu (SHIB) was todays bull of the day, and was up by 48% as of writing, hitting an intraday high of $0.00003484 in the process.　　In the last 24-hours, shiba Inu has risen by over 70%, following its breakout of resistance at $0.00002332.　　Todays move has led to the 14-day RSI climbing by its most since October 29, when $SHIB traded at a now ATH of $0.00008894.　　SHIB/USD – Daily Chart　　As seen from the chart, prices now trade marginally over resistance of $0.00003374, which has been in price for the entirety of 2022 thus far.　　Price currently tracks above the overbought threshold, however, many late entrants are sure to still enter the race.Biggest losers　　Following almost 5-days of bullish pressure, crypto bears have somewhat been in hiding, and that continued on Monday.　　Today‘s biggest loser was LEO, which as of writing, is down around 2.60%, and comes as traders appear to be caching out on last weeks’ profits.　　UNUS SED LEO has gained by as much as 40% in value over the last 7-days, and with

2022-02-08Deep Dive

Global Crypto Adoption Could “Soon Hit a Hyper-Inflection Point”: Wells Fargo Report

Wells Fargo Investment Institute, the research arm of Wells Fargo Wealth and Investment Management, has released a report highlighting the potential of cryptocurrencies as an investment opportunity akin to the early days of the internet.　　In a report today titled Cryptocurrencies — Too Early or Too Late？, The banking giant called cryptocurrencies “viable investments” today, but hinted that investors were in no rush to enter the still maturing market. Wells Fargo‘s global investment strategy team said it disagrees that it’s “too late to invest” in crypto given the space is “relatively young. ” in terms of other asset classes.　　According to the banking giant, the technology behind crypto follows a similar adoption path to the Internet in the early to mid-1990s, when “consumers still needed time to understand what technology was, what can do and how it can benefit them. However, like the Internet, the growing number of crypto users suggests that ”the world is starting to embrace the technology – and fast. According to a Crypto.com study from July, the number of global crypto users more than doubled from 100 million in January 2021 to 221 million in June.　　“If this trend continues, cryptocurrencies could soon exit the early adoption phase and

2022-02-08Deep Dive

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