Category: Bitcoin News

The Central Bank of Nigeria (CBN), in its recently released payments system document, stated that it would be open to creating a regulatory framework for potential stablecoin implementations. According to the document, such stablecoin implementations “are likely to be successful payment mechanisms,” so it is necessary to create a regulatory framework.

The CBN’s Nigeria Payments System Vision 2020 document discusses stablecoin implementations and also the creation of a regulatory framework for initial coin offerings (ICOs). Although acknowledging the importance of ICOs, the document stated that regulation was necessary if investors are to revive interest in this type of fundraising.

ICOs are not regulated so there is no appetite for them to be adopted. The document states that ICOs are an asset class and there is potential to adopt the technology of ICOs for new fundraising methods. This could include peer-to-peer lending, crowdfunding, or capital projects in the wholesale market.

The document states that ICOs can be used to raise capital and attract foreign direct investment (FDI), once a proper regulatory framework has been in place.

Regulating Initial Coin Offerings

Although the CBN used to discourage or bar financial institutions from facilitating transactions that involved cryptocurrencies in the past, the most recent payments system document indicates that the central bank’s position towards private-issued digital currencies has changed.

Some Nigerian commentators accused CBN of eroding the power of Nigerian Securities and Exchange Commission. The document however, which envisages a cashless economy in 2025, states that the CBN will regulate the digital currency market alongside the NSEC.

The document states that the CBN would play a role in payment, but the SEC would need a regulatory framework, since tokens are a new asset type.

After the recent FTX crash, Binance has been dealing with rumors, speculation and FUD (fear and uncertainty and doubt). Social media has been abuzz with speculation about Binance’s proof of reserves (POR), and criticism regarding the company’s POR efforts.

CZ was Changpeng Zhao (also known as CZ) who addressed the FUD via Twitter on December 13. CZ tweeted that FUD helped them grow, even though it was extremely annoying. You can make a FUD about anyone without mentioning their name. This spreads awareness. This helps to unify their supporters and creates a common defense alliance.

CZ insists Binance was targeted relentlessly with FUD since day one – some of it allegedly sponsored by a large exchange. “Since then there has been almost no week without FUD. CZ shared his thoughts via Twitter.

CZ’s comment follows the Reuters report, published Dec. 12. It claims that the U.S. Department of Justice has been investigating Binance. Reuters reported Monday that four sources familiar with the matter said that DOJ prosecutors were at odds over the alleged investigation. Angus Berwick, Reuters reporter, wrote that the reported split between DOJ prosecutors was ‘delaying conclusion of a long-running penal investigation’ into Binance.

The speculation and confusion surrounding Binance’s largest crypto exchange, BNB have taken a huge hit to Binance’s exchange token . In the past two weeks, the crypto exchange token BNB lost 8.5%.

The seven-day stats show BNB has lost more than 8% against USD. However, BNB is down 6.9% since Tuesday’s U.S. inflation data. This trend is opposite to what other leading cryptos such as BTC or Ethereum have done. Both coins rose in value between 5-7% and 9:01 AM on Tuesday. ET).

BNB is outperforming crypto assets BTC, Ethereum in terms losses from last year’s all-time highs. BTC is up today but the top crypto asset is still 74% below the all-time high (ATH). While Ethereum ( ETH is down 72% from last years ATH, Binance’s BNB is only down 60% since the crypto asset’s $686 per-unit high price printed on May 10, 2021.

Bitcoin and Ethereum surged Tuesday, along with stocks, on positive news from the U.S. regarding inflation.

According to CoinGecko, the largest cryptocurrency market cap by value was $17,014, up 3.4% over 24 hours.

After the news about the collapse of FTX, a prominent digital asset exchange, the coin has fallen more than 17% over the past week.

Ethereum, the second largest cryptocurrency, rose 2.6% in 24hrs and was priced at $1,269. In the last week, the cryptocurrency that powers smart contract platform and blockchain was hit more than Bitcoin: It’s fallen nearly 20% in seven days.

Many of the crypto markets, including the largest digital assets by market capital, were in the green today.

This small recovery is due to U.S. stocks being buoyed Tuesday by new data from Labor Department’s Producer Price Index report showing a decrease in the cost for goods excluding energy and food. Experts believe this could indicate that inflation is finally under control.

Mati Greenspan, Quantum Economics CEO, stated that “inflation data seems to be turning,” which is really good for asset prices.

This year, the cryptocurrency market has largely followed the U.S. stock markets; inflation in the States is at an all-time high of 40 years. The Federal Reserve has been aggressive in raising interest rates.

Investors have resorted to holding onto greenbacks instead of taking on risk assets like Bitcoin and tech stocks. The U.S. Dollar has seen a significant increase in value over the past year, but today it is losing ground to other currencies based on new Labor Department data.

Bangko Sentral ng Pilipinas, the central bank of Philippines (BSP), issued a warning Tuesday about foreign and unregistered crypto service providers. The primary regulator for the crypto sector in the Philippines is the central bank.

It states that:

Bangko Sentral ng Pilipinas (Bangko Sentral), strongly urges people to avoid dealing with virtual asset service provider (VASPs), who are domiciled in the Philippines or not registered.

According to the central bank’s website, 19 VASPs were registered as of June.

The central bank stated that virtual assets (VAs) pose a risk of price volatility and that VASPs based overseas’may present additional difficulties in enforcing legal recourse, consumer protection and redress mechanism for local customers’.

The Bangko Sentral was highlighted:

Dealings in VA are usually considered high-risk and can lead to huge financial losses from price swings.

The central bank also warned that financial losses resulting from fluctuations in crypto prices cannot be guaranteed by the government. The regulator stressed that the public should be cautious and do their due diligence before engaging in VA-related activities.

Bangko Sentral ng Pilipinas urged the public not to report illegal activities through cryptocurrencies or crypto service providers to its central bank.

The central bank declared last week it would stop accepting new VASP license application for three years starting September 1. According to the regulator, it “aims to strike a balanced between promoting innovation within the financial sector and ensuring that associated risk remain within manageable levels.”

With all the green surrounding Bitcoin on crypto exchange monitors it has found a strong ally again in a Wall Street stalwart.

Billionaire Mike Novogratz is not fazed at the negative sentiment engulfing crypto markets, and he has another prediction: Bitcoin could reach $500,000 within the next five-years.

Although the industry has seen rapid growth, there are still many skeptics. However, it has many hopeful advocates. Novogratz is one of these people.

Novogratz (CEO of cryptocurrency investment firm Galaxy Digital) stated during his speech at Bloomberg Crypto Summit that one BTC would be worth half a billion dollars in five years. The cause of this rise in cryptocurrency usage is cited by the billionaire.

Bitcoin about to Breach $24,000

Bitcoin has surpassed $24K as of the writing. It is currently trading at $23,745, an increase of 24% over the previous seven days. Figures from Coingecko, Wednesday.

Novogratz is not the only prominent crypto advocate. Anthony Scaramucci (founder of SkyBridge Capital), predicted that Bitcoin would reach $500,000 in the next four- to five years.

Cameron Winklevoss and Tyler Winklevoss were the original founders of Gemini, a digital currency exchange. They have said that Bitcoin has yet to be accepted. They predicted that Bitcoin’s price would rise to $500,000 in the near future.

Novogratz says that Bitcoin’s unique characteristics are what make it stand out. He emphasized that Bitcoin was designed to be an anti inflationary store of value.

Bitcoin is better than gold?

He said that the crypto’s transferability is one of the many advantages it has over the precious metal gold.

It relates to global economic system and adoption. He said that while it is an adoption roadblock, this does not mean there is a complete U turn.

Novogratz stated that he continues to see institutions, “that have not yet gotten involved, but who see this opportunity as a major opportunity.”

Wall Street veterans also attacked regulators, saying that they weren’t doing enough to protect investors from the leverage play of institutions. He also said that the worst days of the cryptocurrency market might be over.

Novogratz had predicted that, in June, in order for cryptocurrency markets to recover from the crash, the United States Federal Reserve would have to “lift its foot off of the brake” and that most hedge funds investing in digital currency would fail.