Crypto Guides, Knowledge & Insights

El Salvador Could Face ‘Limitation’ on Bitcoin’s Use as Medium of Exchange: JPMorgan

Global investment bank JPMorgan says bitcoin‘s use in El Salvador’s economy faces headwinds, suggesting a potential “limitation” on its use case as a medium of exchange may emerge.　　In a report by the bank on Thursday and reported by Bloomberg Sunday, JPMorgan said problems could arise due to the fact that much bitcoin is tied up in illiquid entities, 90% of which hasnt changed hands in over a year.　　The bank points to daily payment activity in the country which would represent around 4% of recent on-chain transaction volume and over 1% of the total value of tokens that have transferred between wallets in 12 months.　　This represents “potentially a significant limitation on its potential as a medium of exchange,” JPMorgan said.　　El Salvadors legislature voted and passed its Bitcoin Law on June 8 that will see the country formally adopting the crypto as legal tender on Sept. 7.　　Some critics are questioning the move by the countrys President Nayib Bukele, who initiated the bill, while others argue it violates their constitutional rights.　　JPMorgan also outlined a recent survey showing a majority of Salvadorans viewed the new law as “not at all correct” with a further 46% of those polled saying they had no idea what

2021-07-12Deep Dive

World Bank, IMF Advocate For CBDC Adoption At G20

On Friday, the International Monetary Fund (IMF) and the World Bank argued for the cross-border benefits of central bank-issued digital currencies (CBDC), claiming that projects like the United States digital dollar would aid global development.　　World Bank And IMF Support CBDC　　Together with the Bank for International Settlements (BIS), the two global organisations released a paper saying that coordination on digital currencies will upend the status quo of needing to rely on expensive and delayed money transfer services to transport money throughout the world.　　“Faster, cheaper, more transparent and more inclusive cross-border payment services would deliver benefits for citizens, businesses, and economies worldwide,” said Indermit Gill, World Bank Group vice president of equitable growth, finance and institutions.　　The technology allows the Bank of England‘s deputy governor for financial stability, Sir Jon Cunliffe, to “start with a ’clean slate” when it comes to strengthening the payments system, he added.　　The paper was developed for a G20 summit in Italy, which brought together finance ministers and central bankers from the worlds top nations.　　The paper envisions a central bank digital currency environment in which currencies can be quickly and at any moment exchanged. Digital currencies could provide the same services to retail customers that central banks provide swap

2021-07-12Deep Dive

$350K Stolen From 93K Victims of Fake Crypto Mining Android Apps (Report)

The cybersecurity firm Lookout detected numerous crypto mining scams employing hundreds of fake Android applications. The fraudulent scheme affected at least 93,000 people and stole more than $350,000 from them.　　 Stealing Money Instead of Mining Crypto　　According to a recent report, the security company Lookout discovered 172 bogus Android applications meant to be used for digital assets mining. Instead, the apps turned out to scam at least 93,000 victims and embezzled some $350,000 from them.　　The applications were categorized into two distinct Android app divisions – BitScam and CloudScam. The bad actors allegedly designed them to target people interested in cryptocurrencies.　　At their core, BitScam and CloudScam advertised crypto mining operations for a fee to the clients. However, the apps did not provide the aforementioned services and pocketed the victim‘s money. What’s more, those applications displayed fake minimum account balances to delude the users. Ioannis Gasparis – Lookout mobile app security researcher noted:　　“These apps were able to fly under the radar because they don‘t actually do anything malicious. They are simply shells set up to attract users caught up in the cryptocurrency craze and collect money for services that don’t exist.”　　Lookout revealed that 25 out of the 172 fake apps were available for

2021-07-12Deep Dive

Study: Bitcoin and Dogecoin are the First Investment for 45% of Young Britons

Nearly half of the UK residents aged between 18 and 29 admitted that their first investment was in digital assets. However, more than 50% of the youngsters used debt to purchase cryptocurrencies.　　Crypto is Attractive for The Young Britons　　A recent poll conducted by Opinium for the investment platform Interactive Investor revealed that 45% of 18-29-year-olds in the UK dived into the crypto market as a first-time investment in their lives.　　Out of all digital assets, bitcoin is by far the most popular among the youngsters as more than 20% of them invested in it. Interestingly, the “meme coin” – Dogecoin – is also one of the most preferred cryptocurrencies.　　However, 56% of the participants admitted that they had taken on debt to fuel their bitcoin purchases. 23% of the attendants used their credit cards to allocate funds in the digital asset, while 17% went for student loans. A further 16% employed another type of loan.　　Myron Jobson – a personal finance campaigner at Interactive Investor – described this percentage as distressing:　　“Young adults using credit cards, student loans and other forms of debt to invest is a worrying trend.”　　He sounded a note of caution for the youngsters that the huge debt could damage their credit

2021-07-12Deep Dive

Ethereum (ETH) Fees in Eight-Month Lows: Santiment

Last month, the Ethereum (ETH) network became overloaded: transactions were inadequately expensive and slow. While many developers and users switched to other blockchains, Ethereum (ETH) fees printed multi-month lows.　　New record　　According to the latest tweet shared by Santiment, a leading on-chain data vendor, both median and average fees for Ethereum (ETH) transactions dropped to levels unseen since the previous year.　　In mid-July 2021, the average fee for sending one Ethereum (ETH) transaction was as low as $2.19. According to other trackers, the median Ethereum (ETH) transaction fee is $2.75.　　Median fees are also sitting at multi-month lows. The median commission for one Ethereum (ETH) transaction is below $1.40.　　Historical Ethereum (ETH) fee highs were registered amidst the “dog-coin” euphoria in mid-May. It was $70 to authorize one Ethereum (ETH) transaction.　　What does this mean？　　As a result, Ethereum (ETH) fees are down 97 percent down from their peak. Santiment analysts treat this as a positive sign for the Ethereum (ETH) network.　　Lower fees mean a lower level of congestion and result in more comfortable transactions on the Ethereum (ETH) network:　　This is a promising sign that $ETHs utility can rise with little impact of fees standing in the way of healthy circulation.　　Amidst the perennial collapse of the Ethereum

2021-07-12Deep Dive

Major South Korean Bank Makes Foray Into Cryptocurrency Custody

Woori Financial Group, South Koreas fourth-largest lender by total assets, has joined the growing list of institutions that have ventured into cryptocurrency custody.　　According to a July 11 report by Woori Financial Group, the major banking group has partnered with local blockchain development company Coinplug to form a joint venture called D-Custody. The JV could be incorporated as early as this month.　　By moving into crypto custody, Woori Bank wants to tap into mushrooming demand for cryptocurrency safekeeping solutions among large South Korean companies that have exposure to the burgeoning asset class.　　Since domestic firms are prohibited from storing their crypto on exchanges, they have to resort to self-custody at their own risk.　　Regulatory roadblocks　　Korea Digital Asset COO Cho Jin-seok claims that crypto custody is more predictable than trading, which is why domestic banks are embracing it.　　While its maritime neighbor, Japan, allows banks to offer crypto custody directly to its clients, South Korea requires setting up a JV, which complicates the process.　　Prior to Woori Bank, KB Financial Group had to follow the same path to enter the crypto custody market.　　Multiple major European and American banks, such as Deutsche Bank, New York Mellon, and Standard Chartered, have already dabbled in the abovementioned market niche.

2021-07-12Deep Dive

Bitcoin (BTC) Acquired by Yet Another Top-League Asset Manager as Accumulation Intensifies

Lincoln Avenue Capital, an investment team that addresses the “affordable housing” sphere shared the details of its eight-digit Bitcoin (BTC) purchase.　　Lincoln Avenue Capital buys its first 1,000 Bitcoins (BTC)　　According to the official announcement shared on its social media channels, U.S.-based asset management firm Lincoln Avenue Capital has bought 1,000 Bitcoins (BTC) at the $33,525 level.　　This $33.5 million purchase constitutes five percent of the net value of the firms assets under management. At the same time, Lincoln Avenue Capital shares its ambitions to increase this figure in the future.　　As per the announcement, Lincoln Avenue Capital may invest up to 20 percent of its AUM into the flagship cryptocurrency.　　Active since 1998, Lincoln Avenue Capital offers its clients various investing strategies with a focus on middle-class real estate objects.　　Welcome to the club　　As of 2021, Lincoln Avenue Capital preserved 4,100 units of property across the U.S. in the “affordable” category.　　Their purchase is announced amidst another wave of accumulation of Bitcoins (BTC). Data by Glassnode leading on-chain tracker indicates increasing interest in long-term holding demonstrated by Bitcoiners.　　According to Bitcoin Treasuries, the largest dashboard dedicated to corporate holdings of Bitcoin (BTC), more than 1.6 million Bitcoins (BTC) are owned by corporations. That is almost eight percent

2021-07-12Deep Dive

Christine Lagarde: 80 Central Banks Looking To Adopt CBDC

According to Christine Lagarde, the head of the European Central Bank, at least 80 central banks around the world are looking at CBDC adoption.　　80 Central Banks To Adopt CBDC　　“We think that its a duty of us to actually have available digital currencies that would operate to the benefit of consumers,” Lagarde said at a press conference, adding:　　“So, what would it look like？ Well, it could be used like banknotes. I dont think it is like banknotes, because it will not have the degree of anonymity that banknotes have.”　　In talks with consumers who answered in large numbers, Lagarde noted that many remarked, “We want our privacy to be safeguarded, but we dont want anonymity because we realize the risk of anonymity.”　　Studies on central bank digital currencies began in China as early as 2014, with Sweden leading the discussion on what an e-krona, e-euro, or e-dollar may look like.　　Commercial banks function as safe guardians of deposits may be jeopardized if central banks give access to everyone, with the design now shifting to resemble the present system, in which central banks issue money to commercial banks, who then distribute it to the general public.　　The public, like now, would be able to access their

2021-07-12Deep Dive

TikTok Is Banning Influencers From Promoting Cryptocurrencies

TikTok has updated their policy on branded content this week, and the social media giant is putting a halt to crypto influencers. The policy could have implications for creators whose content relies on the crypto and broader financial landscapes.　　The Policy Change　　While the policy change does have some exemptions, the newly prohibited bucket of content is “Financial Services and Products”. This category includes, but certainly isnt limited to, topics including crypto, loans and credit cards, trading platforms, forex trading, commemorative coins, investment services, and more.　　However, TikToks advertising policy remains the same, which currently allows financial services companies to advertise to people over the age of 18. Despite this, ads for cryptos and digital assets specifically are already prohibited on the platform.　　However, despite any real means of regulation, TikTok has become a rising tool for financial information for young consumers. The financial corner of the platform, dubbed ‘FinTok’ or ‘StockTok’, is a massive blend of speculation, over-exaggeration, and actual financial insights or perspectives.　　As an extension of this, TikTok has faced increased scrutiny lately for allowing unregulated financial advice throughout the platform.　　A Sign Of The Times？　　Crypto “shilling” is certainly not a rarity on social media channels these days, and TikTok is no exception.

2021-07-10Deep Dive

Survey finds most El Salvador citizens are skeptical of making BTC legal tender

More than half of Salvadorans surveyed dont seem as keen as their president to adopt Bitcoin.　　According to a newly released survey, up to three-quarters of Salvadorans are skeptical over President Nayib Bukeles Bitcoin adoption plans.　　The survey, which polled 1,233 people across El Salvador between July 1 and 4, revealed that only 20% approved of the plan to make Bitcoin legal tender　　The survey, which has a margin of error of 2.8%, was conducted by researcher Disruptiva, which is affiliated with Francisco Gavidia University. According to Reuters, it found that about 54% of people viewed the Bitcoin adoption program as “not at all correct”, while another 24% described it as “only a little correct.”　　Almost half of the respondents, or 46%, admitted that they knew nothing about Bitcoin. Around 65% of them were not open to the idea of being paid in digital currency.　　Head of Disruptivas institute of science, technology, and innovation, Oscar Picardo, commented that “this is a risky bet on digital transformation.”　　The country‘s new Bitcoin law was passed on June 9, and is due to take effect on September 7 making the world’s leading crypto asset a parallel official currency in the Central American nation. Late last month, the government unveiled

2021-07-09Deep Dive

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