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Hier — 28 février 2020Bitcoin News

Lebanon Fights for Separation of Money and State as Residents Use Bitcoin to Evade Capital Controls

Par Graham Smith
Lebanon Fights for Separation of Money and State as Residents Use Bitcoin to Evade Capital Controls

Mass unrest in Lebanon due to allegations of political corruption and heavy handed capital controls has carried over into the new year, with reports pointing to a notable uptick in bitcoin trading from the embattled nation. As residents seek to preserve as much value as they can while government falters, some traders are calling for a separation of money and state, thinking it is high time to put financial power back into the hands of the people.

Also read: Bank Closures and Withdrawal Restrictions Anger Lebanese Citizens

Mass Unrest Over Bank Closures and Withdrawal Limits

There’s been no end to Lebanon’s troubles since last fall, when banks locked their doors to the public in fear of running out of cash to supply panicked and angry customers. Withdrawal limits were imposed and demonstrators in the country have been protesting what they view as deep-seated political corruption and mismanagement of the country’s wealth. Tax hikes, austerity measures, and accusations of high-level embezzlement fuel the fire of unrest which continues today.

As news.Bitcoin.com reported in January, banks began to close yet again, with the Lebanon Association of Banks reportedly calling for the closures in light of public anger and threats to bank employee safety. There was also one documented occurrence of a 10-hour standoff between an angry customer and a bank office in Halba.

Lebanon Fights for Separation of Money and State as Residents Use Bitcoin to Evade Capital Controls

More Lebanese Turn to Bitcoin in Midst of Suffocating Capital Controls

A new report from regional outlet Al Jazeera details that some in the country are turning to bitcoin to stave off the dire financial straits imposed by the state. According to the report, there is currently a cap of $50 – $100 a month on foreign currency withdrawals, and international transfers for what the state deems “necessary matters,” are limited to $50,000 a year.

This presents a big problem for the Lebanese people, who are forced to withdraw their funds in limited amounts at an official rate which doesn’t match the parallel market. Lebanese must accept their cash at about a 40% loss thanks to the centrally mandated rates.

A Lebanese engineer named Maher described his plight to the outlet, saving up money working out of country and depositing it into Lebanese banks, only to see the value crushed by economic crisis. He and others are now moving into bitcoin to get around the impositions. One trader, Mahmoud Dgheim, states:

Right now, Lebanese are interested in escaping tight restrictions on cash withdrawals and transfers … If you want to go around the banking system, bitcoin is a solution.

A Beirut-based trader emphasized, “Before the uprising, bitcoin gave me supplementary income, but now, it’s definitely become the primary.”

Lebanon Fights for Separation of Money and State as Residents Use Bitcoin to Evade Capital Controls
Bitcoin is selling at a high premium in Lebanon. Source: localbitcoins.com

Bitcoin is definitely selling at a significant premium in the country, at least according to offers listed on Localbitcoins.com. The average price of the buy listings at time of writing is roughly 19,863,466 Lebanese pounds per BTC, or about $13,165, with the market price on most tickers currently reading just over $8,600 for one coin.

OTC Trading a Popular Method for Moving Money

According to Al Jazeera’s report, messaging services like Whatsapp are popular means for connecting buyers and sellers, so that OTC (over-the-counter) transactions can take place. The outlet details that even businesses are leveraging OTC trade to pay their employees with bitcoin. Another method sellers in the country leverage is the acceptance of verified banker’s cheques. Whatever the means, the fact that traders are taking a risk on volatile Lebanese banks and the embattled local currency to facilitate movement of BTC is strong testament to the newly invigorated market.

Don't want to blow it out of proportion, a lot of Lebanese cannot move to Bitcoin due to banks/OPEC sanctions.

But now, Bitcoin in Leb is starting to look like a real thing. https://t.co/PUurv3YF2y

— David Hollerith (@DsHollers) February 25, 2020

Trader @CryptoLira, who reportedly manages sizable accounts in the Middle East, also contributed to the piece, noting that “They just want to get their money out of Lebanon – we’re talking really large sums,” and that these accounts are doing so at a loss. Most emphatically the trader proclaimed:

If you’re fighting for a world where bitcoin is a main currency, you’re fighting for the end of all governments. We had the separation of church and state – today, bitcoin is working towards the separation of money and state.

Lebanese traders can also leverage the peer-to-peer trading platform local.Bitcoin.com, where the marketplace and encrypted chat allows for private exchange of physical goods and multiple fiat currencies for bitcoin cash with no KYC policy. Whatever the means chosen by Lebanese seeking to preserve their hard-earned value, the volatile climate in the country is just one more testimony to the necessity of peaceful, permissionless, peer-to-peer electronic cash.

What do you think about the situation in Lebanon? Will bitcoin become more and more popular as the banking crisis unfolds? Let us know what you think in the comments section below.


Images courtesy of Shutterstock, fair use.


Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely.

The post Lebanon Fights for Separation of Money and State as Residents Use Bitcoin to Evade Capital Controls appeared first on Bitcoin News.

À partir d’avant-hierBitcoin News

BCH Latam: Creating a Viral Feedback Loop for Mass Adoption With Bitcoin Cash

Par Jamie Redman
From Dash to Bitcoin Cash - George Donnelly Discusses the BCH Latam Initiative

This week news.Bitcoin.com spoke with George Donnelly from the BCH Latam initiative about his plan to help the people of Latin America “achieve greater individual liberty and prosperity.” Donnelly explained the BCH Latam initiative aims to generate greater financial inclusion through mass adoption systems and the organization’s gamified adoption app will help with this goal.

Also Read: 3 Cents per kWh – Central Asia’s Cheap Electricity Entices Chinese Bitcoin Miners

From Dash to Bitcoin Cash: George Donnelly Discusses the BCH Latam Initiative

George Donnelly is a libertarian entrepreneur who recently worked with the Dash Latin America (Dash Latam) effort, but has since moved his focus over to bitcoin cash (BCH). Not too long after, Donnelly officially launched BCH Latam and hopes to help spread liberty and economic freedom to residents living in Latin America. Donnelly started crowdfunding the initiative to help further the project’s goals and he used the Simple Ledger Protocol (SLP) to create PAN token. PAN will be used to help bolster adoption, create gamification and leverage SLP attributes like dividends as well. Donnelly told our newsdesk that the team has sold 1% so far and aim to give the PAN token life by applying merchant acceptance for goods and services. While chatting with news.Bitcoin.com, the BCH proponent also discussed his views about the current state of Bitcoin Cash.

BCH Latam: Creating a Viral Feedback Loop for Mass Adoption With Bitcoin Cash
George Donnelly launched the BCH Latam Initiative.

Bitcoin.com (BC): Can you tell our readers how you got into spreading cryptocurrency adoption?

George Donnelly (GD): As a libertarian activist during the Ron Paul years, I couldn’t help but discover Bitcoin. And understanding Bitcoin meant I couldn’t help but start using it and inviting others to use it. With the 2017 price run-up, it seemed like a good time to finally work on mass adoption. So, in early 2018 I started affiliating merchants for Dash in Medellín, Colombia, my home now for nearly 20 years.

BC: You once worked with the Dash community. Can you explain why you left the Dash community and have been promoting bitcoin cash recently?

GD: Bitcoin Cash has more promising conditions that should enable us to achieve our goals, which include onboarding 1 billion new daily crypto users by 2030 and solving the inflows challenge. Bitcoin Cash has a larger community with a welcoming and positive attitude that is focused on market-based growth and Bitcoin as P2P electronic cash.

Dash has abandoned its Latin America and digital cash strategies and is now pursuing a venture capital and dapps strategy.

BCH Latam: Creating a Viral Feedback Loop for Mass Adoption With Bitcoin Cash
For more information about the BCH Latm initiative check out the proposal here.

BC: Can you tell us about the BCH Latm initiative?

GD: We created BCH Latam in order to serve the people of Latin America in their efforts to achieve greater individual liberty and prosperity. We aim to generate greater financial inclusion through self-sustaining BCH adoption systems with a strong focus on the informal economy. The informal economy in Latin America includes 150 million working people, 53% of jobs and one-third of regional GDP. Informal economy entrepreneurs are excluded from economic growth by excessive government bureaucracy, taxes, and fees. Business activities that we take for granted, such as formal asset registration, incorporation, credit, and banking, are not readily available to the informal economy.

BCH Latam aims to build a thriving Bitcoin Cash ecosystem in Latin America with a bowling pin strategy of merchant adoption, remittances, B2B buying, international trade and more. We’ve honed our plan with more than two years of research and fieldwork in Latin America, where we have team members in six nations plus Spain. Our gamified adoption app will enable indie BCH adoption workers to earn their way into Bitcoin Cash by completing verifiable tasks that add concrete value to the Bitcoin Cash network. Gamified adoption is a viral feedback-loop system to kickstart BCH adoption globally in parallel at a low cost.

BCH Latam is in this to kickstart the Bitcoin Cash commons in Latin America, provide superior value to the developing world through BCH and eventually make Bitcoin Cash the international currency of Latin America. We aim to leverage our results to create a groundswell of buzz for Bitcoin Cash across the globe.

BCH Latam: Creating a Viral Feedback Loop for Mass Adoption With Bitcoin Cash

BC: What prompted the idea to start crowdfunding and create a video presentation?

GD: Remittances are a key early bowling pin for us, but it is an industry that requires a multi-location approach and a serious marketing and development plan. There is no formal funding mechanism for Bitcoin Cash projects and the Bitcoin Cash Ecosystem Fund is taking some time to get off the ground, so we aim to offer value for value by giving our donors our fixed-supply PAN token. Our PAN token enables donors to both show off their support for BCH Latam and potentially profit from our success in the future. We are also seeking feedback from the Bitcoin Cash community on our plans and activities, as well as new members to join our team. We hope to attract a CFO and lead developer from within the BCH community this month.

BC: Which specific countries in Latin America do you think need the most attention?

GD: We’re focused on Colombia, Venezuela, Brazil, Mexico, Guatemala, Cuba and Chile, roughly in that order. Colombia sends a lot of small remittances to Venezuela, often paying fees as high as 40%. Mexico is the largest remittance recipient in Latam, and the third largest in the world, with $36 billion in 2018 inflows. Cuba is a small market that is experiencing high remittance fees and difficulties due to US sanctions.

BC: How do you expect to create a “viral, feedback-loop mass adoption system”?

GD: Our gamified adoption app will present the end-user with a series of tasks they can complete to earn our PAN tokens. Tasks will begin with watching videos that teach them about Bitcoin Cash and progress to onboarding merchants, becoming liquidity agents, referring new remittance senders, spending BCH, providing support to merchants, holding meetups, starting Bitcoin Cash businesses and more. Think of it as a hybrid of Duolingo, Uber, a choose-your-own-adventure novel and a mechanical Turk. All tasks will be verifiable. Verification will be done via gamification by more advanced users and/or by an in-house quality control team. We will be able to limit the use of the system by market and country, thus ensuring that each market develops in a balanced manner.

By enabling new users to earn their way into Bitcoin Cash, we remove the barrier to entry of having to buy-in. This also helps solve the inflows challenge.

BC: What are PAN tokens?

GD: PAN is an SLP token with a fixed 400,000 token supply that we are selling in order to finance our profit-seeking BCH remittances business plan. We have sold about 1% of the 180,000 currently for sale. We aim to give our PAN token real-world utility by having our merchants accept it for goods and services and by making it the currency of our gamified adoption app. We’ve apportioned up to 45% of the total supply to finance 15 to 18 months of runway for our BCH remittances startup Panmoni, 25% for the team and 30% for the gamified adoption app or possibly a second financing round. Full details are available at bchlatam.com/crowdfunding2020.

BCH Latam: Creating a Viral Feedback Loop for Mass Adoption With Bitcoin Cash
PAN token data from the website Simpleledger.info.

BC: Do you think Bitcoin Cash will ever become a global currency or something that’s just used by a niche group?

GD: I believe that Bitcoin Cash can become the dominant currency of the world. Our challenge is to build real consumer utility that crosses the chasm and is adopted by mainstream users to meet regular and basic needs. Remittances are a repeat-use $689 billion per year industry that promises to be an excellent first stepping-stone towards regular, global use for Bitcoin Cash.

BC: How do you feel about the current state of Bitcoin Cash as far as ecosystem and development growth?

GD: The irregular block times and the passionate furor over the Infrastructure Funding Plan are a bit unsettling. The frequent meetups, the number, and variety of developers read.cash, memo.cash, the people working on merchant adoption, Bitcoin.com, the welcoming and supportive attitude of the community, and Local.Bitcoin.com are all very encouraging.

We urgently need to move forward on ecosystem funding, regular block times and instantly-settled transactions. We need more mobile developers. A reduced focus on passionate philosophical debate and an increased focus on practical, systematic business plans would be good. It’s important people realize that we need to solve the inflows challenge in order to progress beyond small-scale, hobbyist merchant and consumer adoption. Almost no one is talking about this. I’d like to see software development revolve around more evidenced, researched and properly presented business use cases so we can use resources effectively to grow real use in the real world.

What do you think about the BCH Latam initiative and George Donnelly’s efforts? Let us know your thoughts in the comment section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Image credits: Shutterstock, BCH Latam Initiative, Fair Use, and Pixabay.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post BCH Latam: Creating a Viral Feedback Loop for Mass Adoption With Bitcoin Cash appeared first on Bitcoin News.

IMF Helping Philippines Become Important Crypto Market

Par Kevin Helms
IMF Helping Philippines Become Important Crypto Market

The International Monetary Fund (IMF) is providing the Philippines with technical assistance regarding crypto assets. The IMF believes the country may become an important crypto market and has provided the Bangko Sentral ng Pilipinas with suggestions for the country’s crypto regulation, including quarterly data collection from approved crypto exchanges.

Also read: Regs Roundup – China Blockchain ETF, New French Crypto Rules, Tokens Money in Russia

IMF Helping Philippines’ Central Bank

The International Monetary Fund published a 34-page Technical Assistance Report on the Philippines this week as part of its periodic consultation with the country’s regulators. The report and recommendations within it are based on an assessment the IMF staff conducted in July. The contents of the report constitute technical advice provided by the IMF staff to the authorities of the Philippines in response to their request for technical assistance, the report details.

The IMF is also helping the Philippines’ central bank, the Bangko Sentral ng Pilipinas (BSP), in several areas to improve the quality of monetary and financial statistics compiled by the central bank. “At BSP request, the mission also delivered a lecture on the treatment of crypto assets in macroeconomic statistics,” based on the latest methodology released by the IMF’s Statistics Department, the organization detailed. Emphasizing the growing number of crypto exchanges approved by the BSP, the IMF asserted:

The Philippines may become an important market for crypto assets.

IMF Sees Crypto Potential in the Philippines, Advises Central Bank on Policies

The BSP adopted a formal crypto regulatory framework through the issuance of Circular No. 944 in 2017. Businesses engaged in the exchange of cryptocurrencies for fiat money in the Philippines are required to register with the central bank as remittance and transfer companies.

IMF Encourages the BSP to Collect Data From Crypto Exchanges

According to the BSP’s most recent list, there are currently 13 approved crypto exchanges in the Philippines. They are Betur dba Coins.ph, Rebittance, Bloomsolutions, Virtual Currency Philippines, Etranss Remittance International, Fyntegrate, Zybi Tech, Bexpress, Coinville Phils, Aba Global Philippines, Bitan Moneytech, Telcoin, and Atomtrans Tech.

IMF Sees Crypto Potential in the Philippines, Advises Central Bank on Policies

The IMF report also notes that “The mission encourages the BSP to start exploring the possibility of collecting data on these exchanges for macroeconomic analysis, in particular international financial flows using crypto assets,” elaborating:

The mission suggests requesting aggregated data, on a quarterly basis, on gross transactions, indicating the country of origin and destination of the funds transacted.

“In addition, it would be useful to breakdown the parties involved in the transactions between individuals, financial corporations, and nonfinancial corporations,” the staff advised.

The suggestions by the IMF are similar to the recommendations by the Financial Action Task Force (FATF), an intergovernmental body responsible for developing policies to combat money laundering. The FATF issued guidance on a risk-based approach to virtual assets and related service providers in June. It urges countries and obliged entities to design customer due diligence processes to meet both the FATF standards and national legal requirements. Its recommendations include “identifying the customer and, where applicable, the customer’s beneficial owner and verifying the customer’s identity on a risk basis and on the basis of reliable and independent information, data, or documentation to at least the extent required by the applicable legal or regulatory framework.”

What do you think of the IMF helping the Philippines shape its crypto policies? Do you think the Philippines is already an important crypto market? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post IMF Helping Philippines Become Important Crypto Market appeared first on Bitcoin News.

Using a VPN May Get Israeli Crypto Traders in Trouble

Par Avi Mizrahi
Using a VPN May Get Crypto Traders in Trouble in Israel

Do you use a VPN? It’s a privacy-enhancing tool that everyone should be using, especially those with digital assets. Or do you happen to be older than the typical crypto trader? Both of these characteristics are part of a list of so-called ‘red flags’ that can get you in trouble with a new dragnet that is being established in Israel.

Also Read: Why a VPN Is the First Layer You Should Pull On When Browsing the Web

Too Many Red Flags

On December 31, 2019 the Israel Money Laundering and Terror Financing Prohibition Authority published a draft guide titled ‘Red Flags in the Virtual Assets Field’ for the public to review. The document contains a list of ‘red flags’ that is intended to help the private sector formulate a policy on anti-money laundering risks related to digital assets such as cryptocurrencies. It was compiled by the authority in collaboration with various financial regulators and members of the industry.

The authority noted that digital assets can promote economic innovation, but are “a challenge” to enforcement agencies seeking to conduct financial investigations and seize prohibited property originating from crime. Therefore, the guide was designed to help financial bodies identify activity that can be “problematic.”

Using a VPN May Get Israeli Crypto Traders in Trouble

The authority also said this guide was compiled in collaboration with various financial regulators and members of the industry. However, voices in the Israeli crypto community have already criticized it for having too many so-called ‘red flags’ which are the result of excessive and unjustified concerns by the regulators. “Such red flags hurt both the growing industry and technology, and the fundamental rights inherent in democracy: the freedom of the individual, the right to privacy, the right to property and freedom of occupation,” commented lawyer and accountant Ron Tsarfaty, the Chief Financial and Compliance Officer at Bit2c.

The Israel Money Laundering and Terror Financing Prohibition Authority was established in 2002 as an independent financial intelligence unit acting in accordance with the international rules against money laundering prescribed by the Financial Action Task Force (FATF). In 2018 Israel became the 35th member state in the FATF, the intergovernmental organization founded in 1989 by the countries of the G7. In June 2019 the FATF published its ‘final guidance’ on crypto assets and service providers, which has forced many industry companies around the world to change how they do business at the expense of clients’ privacy.

Targeting Older People, VPN and Tor Users

The guide draft lists dozens of red flags and explains that in the event that one or more of these is triggered the service providers must investigate the matter and if suspicions of money laundering or terror financing arise, report immediately to the authority or the police. Among the dozens of red flags listed, many focus on users who try to protect their privacy, for example by using coin mixers or dealing in dash, monero or zcash. There is also focus on users of VPNs, Tor and any other privacy enhancing technology.

The red flags also cover obvious cases such as darknet vendors, suspected ICO pump and dumps or Ponzi scams, and ransomware hackers. However, the list of suspicious activities and clients also includes older people, users of P2P or decentralized exchanges, people who appear to be in a hurry to trade and even people who donate to charities using crypto.

Using a VPN May Get Israeli Crypto Traders in Trouble

The long list of ref flags that service providers, such as crypto exchanges, are required to monitor includes the following:

  • Purchase of virtual assets in high amounts of cash;
  • Purchase of virtual assets in high amounts between private individuals;
  • Complex activity of conversion or transfer of virtual assets, without reasonable explanation;
  • Change of address, telephone number or other means of identification frequently, without reasonable explanation;
  • The recipient of the service is not within the typical population of virtual assets, such as an older person;
  • The recipient of the service refuses to present a legitimate source of funds or documents verifying the information provided, without reasonable explanation;
  • The recipient of the service shows indifference to the terms of service, including fees and costs;
  • The activity does not match the normal service recipient activity and the identification documents provided by it;
  • The recipient of the service demonstrates pressure or urgency to obtain virtual assets and is not ready to disclose the purpose of the acquisition;
  • The recipient of the service is a public person (including a relative or business partner of a public person);
  • The service recipient requests information about the service provider’s internal systems, policies and procedures regarding the prohibition of money laundering;
  • The service recipient provides inaccurate or incorrect information about the transaction or its relationship with the other party to the transaction;
  • The service recipient mainly uses anonymous or high value currencies;
  • The service recipient enters the service provider’s system using an IP address associated with VPN, The Onion Router (TOR) software or another software that allows users to employ increased anonymity;
  • The service recipient receives virtual assets from illegal gambling sites;
  • The recipient of the service transacts with foundations or nonprofits that receive virtual assets;
  • The recipient of the service carries out transactions in high frequency or high amounts, after a long period of inactivity;
  • The recipient of the service frequently changes its identification information, such as address, email, IP address or bank account;
  • The recipient of the service shows indifference to paying high fees for switching virtual assets to fiat compared to commissions paid to other service providers.

What do you think about the ‘red flags’ that can get Israeli crypto traders in trouble? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


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The post Using a VPN May Get Israeli Crypto Traders in Trouble appeared first on Bitcoin News.

Bittrex Pulls Out of 31 Markets Citing Regulatory Uncertainty

Par Lubomir Tassev
Bittrex Pulls Out of 31 Markets Citing Regulatory Uncertainty

Cryptocurrency exchange Bittrex is discontinuing operations in 31 countries, including Venezuela and Zimbabwe. The trading platform has justified its decision on the basis of the regulatory uncertainty in these jurisdictions. Some of the nations in the list are going through political turmoil and socio-economic challenges.

Also read: Russia Blocks 2 Crypto News Websites

Zimbabwe and Venezuela Among Restricted Nations

Bittrex International, the global trading platform managed by the Seattle-based digital asset exchange, has informed clients residing in the affected countries that they will no longer be able to use its services. The main reason for the decision lies in the unstable regulatory environment there, the company explained in an announcement published on its website this Friday.

“All trading and account access for these impacted customers will be halted on Tuesday, October 29 date at 19:00 UTC/21:00 CEST,” Bittrex detailed. Users have been asked to withdraw their coins and tokens from the platform before the deadline. To do so, they’ll have to log into their Bittrex International account, click “Holdings,” search for the wallet, and click the withdrawal button.

Bittrex Pulls Out of 31 Markets Citing Regulatory Uncertainty

The exchange warns traders they won’t be able to withdraw their balance if it’s below a certain threshold. “The minimum withdrawal for all coins must be greater than 3 times the fee,” the company notes and provides an example: “Your balance in BTC must be .00150001 or greater as the fee is .0005.” Users can find additional withdrawal instructions in the FAQ section of the platform’s website.

Bittrex’s decision to halt exchange operations mostly concerns customers in developing countries. Many of these markets are in Africa, Asia and the Middle East, including crisis-hit Zimbabwe, Uganda, and Pakistan. Bosnia-Herzegovina is the only European jurisdiction on the list. Crypto traders in economically battered Venezuela are also among those that will not be able to use its exchange services in the future.

Crypto Exchanges Under Pressure from Governments

The move affecting its international trading platform comes after Bittrex delisted dozens of coins and tokens this summer that were available previously to U.S.-based traders. Although the exchange explains that a major criterion it considers in such cases is the lack of interest in a project, regulatory pressure in the United States may have also played a role.

Bittrex Pulls Out of 31 Markets Citing Regulatory Uncertainty

Evolving regulatory standards and other compliance issues have been listed among the key factors in its official token removal policy, which the company takes into account when determining whether to delist a coin or remove a market. For example, in April this year the New York State Department of Financial Services ordered Bittrex to cease operations after rejecting its application for a Bitlicense.

International sanctions have also influenced the business decisions of companies in the crypto space. Towards the end of last year, reports came out that users of leading digital asset exchange Binance had been cut off in certain countries. Iran, Belarus, Serbia, Bosnia, Myanmar, and other restricted jurisdictions were affected. Some of those are on the sanctions lists of the UN Security Council and the U.S. Treasury Department’s Office of Foreign Assets Control.

What’s your opinion about Bittrex’s decision to withdraw from 31 countries? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post Bittrex Pulls Out of 31 Markets Citing Regulatory Uncertainty appeared first on Bitcoin News.

Traditional Law and Finance Can Adapt to Bitcoin, These Examples Show

Par Lubomir Tassev
Traditional Law and Finance Can Adapt to Bitcoin, These Examples Show

Bitcoin brought about solutions to persistent problems that stood in the way of previous attempts to invent digital money, such as the risk of double spending. Some of its features, however, like the characteristic irreversibility of blockchain transactions, have created certain challenges for the traditional legal and financial systems. At times they may seem incompatible with cryptocurrencies, but that’s not always the case.

Also read: Telegram Offers to Postpone Launch of the TON Network

Legacy Legal Systems Facing Distributed Ledgers

Matthias Lehmann, director of the Institute for International Private and Comparative Law at the University of Bonn, explores some of the challenges decentralized digital currencies pose to the current legal systems and proposes solutions in a recently published article. But Instead of focusing on transfers resulting from fraud, like the media often does, the German professor turns attention to “less reported” but equally possible transactions.

Lehmann highlights two groups of problems – ‘endogenous,’ associated with faulty transfers where the sender commits a mistake or lacks legal capacity to make the transfer, and ‘exogenous’ problems, when a need for correction may arise because of events taking place outside of the blockchain. The latter category includes insolvency proceedings, for example, or succession of crypto assets. The distributed ledger technology (DLT) was designed to prohibit double spending, but it cannot reverse faulty transfers and does not allow for a transfer of title outside the blockchain, the scholar notes.

Traditional Law and Finance Can Adapt to Bitcoin, These Examples Show

These are common problems and they are pretty standard in private law, the legal expert remarks. But imposing the ordinary rules of private law is not an option in the case of cryptocurrencies. That’s because of the irreversibility of blockchain transactions, on the one hand, and the difficulties in establishing the governing law, on the other. Instead of advocating the easy way out by rejecting what doesn’t fit into existing presumptions, Professor Lehmann suggests a workaround.

To fulfil its corrective function under such circumstances, private law may resort to implementing the concept of ‘obligation to make a transfer.’ The author further elaborates: “For instance, a person who has received a certain amount of Bitcoin by error could be obliged to send back the same amount. A transfer obligation may also be the remedy of choice to effectuate the rights of an insolvency administrator or the heir of an estate.” Other existing laws can be applied to permissionless networks too, like the law of torts in the case of a coerced transfer and the law of restitution to return crypto assets sent by mistake.

Matthias Lehmann thinks the validity of a blockchain transfer should not be assessed using the ordinary concepts of property law and insists that when a correction is needed, transfer obligations will do the job. Thus an “overly assertive role of the law that would make the DLT inefficient and ultimately unviable” can be avoided. The proposed solution corrects the results of a transaction “only to the extent necessary, using the forms and procedures of the DLT” and “dispenses with the need for identifying one national law governing the blockchain by distributing the applicable rules among the various affected legal systems.”

Daily Fixing Formula Proposed for Bitcoin

Decentralized digital currencies are also criticized by the establishment for their volatility which, according to the apologists of the fiat system, makes them inappropriate for a number of applications that require a stable unit of account. The rapid and sometimes significant change in market prices makes it hard to accurately gauge the value of items priced in cryptocurrency, they claim for instance, despite the existence of products and services that already bridge the gap between young, free crypto markets and traditional markets dominated by centrally managed fiat systems.

Traditional Law and Finance Can Adapt to Bitcoin, These Examples Show

One of the characteristics of the crypto space that distinguishes it from the traditional financial world is that bitcoin doesn’t have a fixed exchange rate against other currencies such as those determined by central banks for fiat currencies. However, a reference figure like that is sometimes needed, for example, in court cases involving financial relations or when estimating someone’s tax obligations for holdings in a currency different from the national fiat.

The Russian Association of Cryptoindustry and Blockchain and the Russian Bar Association have recently proposed a solution. The two organizations came up with a formula to set an ‘official,’ so to speak, exchange rate for a particular cryptocurrency. Price data acquired from several digital asset exchanges every 30 seconds will be used to calculate a daily weighted average and the result will be published once every 24 hours. Taking that value as a benchmark, reference exchange rates against the U.S. dollar and the Russian ruble can also be determined and used in accounting.

Do you think traditional legal and financial systems can adapt to incorporate cryptocurrencies? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock.


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Venezuela’s Central Bank Indicates Plans to Stockpile Bitcoin

Par Jamie Redman
Venezuela's Central Bank Indicates Plans to Stockpile Bitcoin

Various reports reveal Venezuela’s central bank is allegedly contemplating hoarding a variety of cryptocurrencies like BTC within its internal reserves. The state-operated gas company Petroleos de Venezuela SA (PDVSA) has asked to send BTC and ETH payments to Banco Central de Venezuela’s (BCV) vaults to pay for oil and gas operations.

Also read: Maduro’s Petro Becomes More Accessible, but Scrutinized by Venezuelans

Venezuela’s Central Bank Plans to Hold Cryptocurrencies Within Internal Reserve System

Sources reveal that Venezuela’s central bank plans to accumulate a stash of bitcoin and ethereum and the bank is currently contemplating methods on how to secure the cryptocurrencies within its internal reserve system. One report states that “four people with direct knowledge of the matter” have detailed that the oil and gas company, PDVSA, has asked the BCV if the entity can send payments using currencies like BTC and ETH. The sources who queried BCV staffers with questions have asked to remain anonymous. According to the informants, the BCV’s reserves are at a three-decade low at just above $7 billion and the central bank is researching schemes on how to secure the digital assets within the BCV’s reserve system.

Venezuela’s Central Bank Indicates Plans to Stockpile Bitcoin
The central bank of Venezuela maintains the fixed exchange rate for the sovereign bolívar and holds the country’s internal reserves.

The informants claim they don’t know how much BTC or ETH the PDVSA actually owns and or how it came to obtain the digital assets. But a slew of reports has elaborated on how the Venezuelan government has been gathering cryptocurrencies in order to hoard them and use them to bypass U.S. and international trade sanctions. Last February Pedro Peroza wrote a number of informative articles concerning the National Superintendency of Crypto Assets and Related Activities (Sunacrip) operations. Peroza believes Maduro’s regime has already been stockpiling digital currencies via the “collection of taxes in cryptocurrency, for that a Law was approved in the ANC (National Assembly Madurista).” Moreover, Maduro’s petro cryptocurrency is all part of the plan. Sunacrip participates in monitoring and licensing exchanges, overseeing state-approved mining operations, and promotes petro adoption across the country. Besides collecting taxes in bitcoin the petro serves two objectives according to Peroza:

  • Devalue the Sovereign Bolivar.
  • Sell petro in exchange for bitcoin and litecoin.
Venezuela’s Central Bank Indicates Plans to Stockpile Bitcoin
Nicolás Maduro and the United Socialist Party of Venezuela introduced the petro, the first nation-state issued cryptocurrency. Many reports detail that the petro is simply used to obtain legitimate digital assets like bitcoin and litecoin while also using the digital currency to bypass U.S. sanctions.

Maduro’s Regime Has Various Methods Available to Stockpile Bitcoin

Maduro and the United Socialist Party of Venezuela have been accused of circumventing financial blockades imposed by the U.S. government according to local reports in July. Investigators revealed that Maduro’s regime allegedly used the Maiquetía International Airport and Sunacrip to convert airline taxes into BTC. Those reports suggested the Venezuelan government has cryptocurrency accounts in China, Russia, and Bulgaria. Sunacrip also announced that cryptocurrencies and the petro could be used to buy airline tickets and amenities from Conviasa Airlines as well. Sunacrip Superintendent, Joselit Ramírez, further explained that the Administrative Service of Identification Migration and Foreigners will accept digital currencies for passports and the National Institute of Transit and Land Transportation will accept cryptos for licenses, fines, plates, and titles. Sunacrip even introduced a payment system called Petro Pago, but citizens say the point-of-sale (POS) infrastructure is meant to collect bitcoin and more valuable digital assets.

Venezuela’s Central Bank Indicates Plans to Stockpile Bitcoin
Sunacrip’s crypto payment system called Petro Pago

On September 14, a girl who emigrated from Venezuela told our newsdesk that the petro is really only for show and government officials are the only ones who use it to bypass the international trade row. “Nobody uses the petro and only people close with government use it to skip out on U.S. sanctions — Sunacrip is really only for miners — they have installed crypto point-of-sale (POS) systems around some stores, but the POS only accepts bitcoin, litecoin, and BNB, so if you have petros, you need to exchange that,” news.Bitcoin.com’s source declared. In fact, Sunacrip is in charge of mining operations in the country and any operation that’s not approved by Sunacrip is illegal. “The Digital Mining Administration’s objective is the planning, coordination, promotion, and execution of digital mining activities and associated processes, licensing and certificates,” Suncrip’s website explains.

Venezuela’s Central Bank Indicates Plans to Stockpile Bitcoin
Sunacrip oversees the digital currency mining industry in Venezuela. Those who do not comply with Sunacrip are running illegal mining operations according to the National Gazette 41,575.

The sources who have been in touch with PDVSA staffers insist the entity won’t sell the coins on the open market due to international exposure but rather have the BCV hold it. This way the oil and gas company has a way to evade financial blockades after selling energy resources. Nearly all the past the reports stemming from Venezuela’s government, show valid signs of the regime and central bank hoarding digital assets like BTC. Maduro and his regime have created many different avenues to collect cryptocurrencies by using the airports, Sunacrip, and other state-run entities. Moreover, in September the state-owned Bank of Venezuela, the country’s largest financial institution has opened a cryptocurrency desk. Reports detail that Bank of Venezuela account holders now see a crypto wallet interface when they sign into their accounts online.

What do you think about Venezuela’s central bank and Maduro’s regime hoarding cryptocurrencies? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Banco Central de Venezuela, Pixabay, and Sunacrip.


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FATF-Driven Delistings Capture the Criminalization of Privacy

Par Graham Smith
FATF-Driven Delistings Capture the Criminalization of Privacy

The delisting of privacy coins like monero, zcash, and dash is becoming something of a trend in Asia, and could soon expand elsewhere. In the wake of the intra-governmental Financial Action Task Force (FATF) issuing new global standards, Korean exchanges Okex and Upbit have announced they will delist and put warnings on several privacy coins in the immediate future, with Okex to axe the tokens in October. The progressive abandonment of such coins in “crypto-friendly” Asia is a warning call to all privacy advocates: you can’t have your regulations and privacy, too.

Also Read: European Countries Step Up Response to Facebook’s Libra

A Growing Trend

Prior to the issuance of FATF recommendations, one of Japan’s largest exchanges had already swung the axe. Coincheck delisted four major privacy coins in 2018 thanks to pressure from the Japanese Financial Services Agency (FSA). An outright ban on Japanese exchanges dealing in privacy coins followed soon after. Further, very few privacy coins are set to be listed on Binance’s upcoming U.S.-compliant exchange, making the concerted effort of regulators worldwide to put the brakes on privacy very clear.

According to a September 10 blog post by Okex, the widely used exchange will cease trading of XMR, DASH, ZEC, ZEN and SBTC for Korean customers as of October 10, 2019 17:00 KST. Users will be able to make withdrawals of the tokens until December 10, 2019 17:00 KST. The announcement, translated from Korean, states in part:

According to the statement corresponding to FATF R.16 … We decided to take measures to end the trading support of stocks that are privacy-oriented cryptocurrency, aka dark coin.

The Okex blog post specifically details the necessity of knowing both sender and recipient information as per the FATF guidelines, something privacy coins can make exceedingly difficult, if not impossible, for exchanges.

FATF-Driven Delistings Capture the Criminalization of Privacy
Okex Korea will cease trading of privacy coins on October 10.

In similar fashion, Korean exchange Upbit has now listed several privacy coins under an “investment warning” status, informing traders that the tokens are under review and may be removed if they are not found to meet FATF recommendations. A September 9 notice on their English website reads: “The amendment to the FATF R.15 states companies handling virtual assets must hold the standard equivalent to that of financial institutions and to register/report its legal business of operation. Particularly applicable in R.16, it states that the collection and retention of information related to the sender and the recipient of the virtual asset.” An update is expected soon as to the final fate of the coins.

Binance’s U.S.-Compliant Exchange

The upcoming U.S. legal compliant iteration of trading behemoth Binance won’t be a haven for privacy seekers, either, judging by the looks of things. With registration beginning on September 18, users will be greeted with a whittled down assortment of trading pairs, and the assets under consideration conspicuously do not include regulator-shunned monero.

FATF-Driven Delistings Capture the Criminalization of Privacy
Candidates under consideration for Binance’s new U.S.-compliant exchange.

In deciding which assets will be supported, Binance lists criteria for qualification including:

Whether trading the candidate asset will affect Binance.US’s ability to comply with applicable legal requirements, including, without limitation, US AML/CFT and securities laws and their implementing regulations … Whether the candidate asset’s community has a record of reaching compromises and consensuses to move the project forward.

The notice is authored by former Ripple executive Catherine Coley, who is overseeing the rollout of the platform as CEO of Bam trading services, the operator of the upcoming Binance U.S. exchange.

FATF-Driven Delistings Capture the Criminalization of Privacy

Privacy’s Not Dead

Compliance, delistings, and compromise are not exactly thrilling prospects for the Satoshi Nakamotos of the world who got into the crypto game to take back financial sovereignty. With privacy coins being gutted, it seems crypto might be losing itself in order to fit in with the big boys of legacy finance. Problem is, the whole idea of bitcoin was to give the financial bullies on Wall Street the middle finger, and not a goofy, submissive thumbs up. In spite of all the pressure, though, the embattled class of privacy coins is far from dead.

XMR ranks number 10 for market cap with a slice of $1.3 billion at press time. DASH is in the 16 slot, and ZEC sits at 28. There is, furthermore, the continued capacity for various “standard coins” to implement new privacy protocols that make regulatory pigeon-holing even harder. Litecoin, for example, may support confidential transactions (CT) in the future according to talk early in the year from Charlie Lee. Developments in that arena seem to be moving forward, if slowly. In the BCH community, the privacy enhancing Cashshuffle protocol is being improved with a proposed anonymizing feature called Cashfusion. The Github project spec states:

Cashfusion provides high levels of privacy via a flexible scheme that allows an arbitrary number of inputs and outputs of non-standard amounts. It provides anonymous, trustless coordination with usually zero-knowledge of linkages revealed to other players or the server.

Where some privacy coins have anonymizing features baked right into the source code, a new generation of protocols like Cashfusion and CT are emerging to afford even “standard” coins a kind of toggle switch allowing for greater anonymity. This way, both mainstream onboarding zealots and philosophically grounded privacy advocates could theoretically get behind the same assets. The trouble this might create for the big-government-doting exchanges would be interesting to watch.

Cui Bono?

When it comes to tokens being banned, blackballed, or delisted, it stands to ask who benefits. As news.Bitcoin.com has reported in past articles, if the concern surrounding these assets was truly about the prevention of terror and crime, the USD fiat scheme should be priority number one for overhaul, but it’s not. In a Reddit thread from August discussing Coinbase’s delisting of zcash in the U.K., user sathound remarked sardonically:

Remember children, tax avoidance and moral bankruptcy is only for the rich.

@zcash @ElectricCoinCo @coinbase what’s going on with Zcash in the UK? pic.twitter.com/6GWS9CuIoH

— Alex (@heskavich) August 8, 2019

Asia and Japan are commonly hailed as crypto meccas thanks to adoption, regulation, and active use cases. Many in the space view this acceptance of crypto as a very bullish sign and a product of forward thinking societies. To those old-fashioned curmudgeons still intently focused on “a purely peer-to-peer version of electronic cash that would allow online payments … without going through a financial institution,” all this talk can ring hollow, however. Of course, exchanges can do as they please, and time will tell which are going to kowtow to the FATF, and which DEXs, OTC platforms, and private traders won’t.

What are your thoughts on the delisting of privacy coins? Let us know in the comments section below.


Images courtesy of Shutterstock, fair use.


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Why the Birth of Bitcoin Can Be Traced Back to 1971

Par Lubomir Tassev
Why the Birth of Bitcoin Can Be Traced Back to 1971

The world economy is a complex system that has undergone many different phases in the past century. As strange as it may sound today, there have been times when banking crises were rare, pay was rising alongside productivity, and the U.S. dollar would buy a certain amount of pure gold. Despite its obvious successes in certain areas, the global monetary system that laid the foundations for this time of stable growth eventually failed, and here’s why.

Also read: Crypto Salaries Gain Regulatory Recognition Around the World

When $35 Bought You an Ounce of Gold

The post-World War II era started with a negotiated monetary system that set the rules for international commercial and financial relations. This was a product of the Bretton Woods agreement from 1944, which created a new financial order in a world devastated by its largest military conflict yet.

The conference in New Hampshire, held before the war was over, established the main pillars of global finance and trade: the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), now part of the World Bank Group. The General Agreement on Tariffs and Trade (GATT), later replaced by the World Trade Organization (WTO), was signed soon after.

Why the Birth of Bitcoin Can Be Traced Back to 1971
U.S. Secretary of the Treasury Henry Morgenthau Jr. addresses delegates at the Bretton Woods Monetary Conference, July 8, 1944 (Source: World Bank)

The governments behind the Bretton Woods system, many of them wartime allies against Nazi Germany, aimed to create a world in which a major armed conflict and a global depression could never happen again. That was to be achieved by building an effective international monetary system and reducing barriers to free trade. Over 700 representatives of 44 countries hammered the agreement in the course of a month. No bankers were invited to take part, by the way.

The delegates decided that their monetary construct should rest on the U.S. dollar as the world’s reserve currency. In an effort to replicate the pre-war gold standard, although in a limited form, the dollar was tied to the precious metal at a fixed price. The United States government committed to convert dollars into gold at $35 an ounce. The U.S. currency became the new gold standard, while retaining flexibility in comparison with real gold.

A system of fixed exchange rates was then introduced, in which all other major currencies were pegged to the gold-backed U.S. dollar. Participating nations had to maintain currency prices within 1% of parity through interventions in their foreign exchange markets. Purchases and sales of foreign currency were constantly made to keep rates close to the target.

The Good, the Bad, the Ugly

The Bretton Woods system was effectively a monetary union with the dollar being its main currency. For some time it generated the stability the post-war world needed to recover and rebuild. Virtually no major country experienced a banking crisis during the period the agreement was respected, between 1945 and 1971.

Speculative financial flows were seriously curtailed and investment capital was channeled into industrial and technological development instead. Helping national economies grow, creating jobs and lowering trade barriers were to give peace a better chance. And to a large extent they did, aside from cold war proxy conflicts.

Why the Birth of Bitcoin Can Be Traced Back to 1971

In 1971 the US President Kills The Gold Standard

Several notable achievements resulted from the Bretton Woods arrangement in a variety of domains. An online portal called WTF Happened In 1971?, the year when President Nixon’s administration unilaterally terminated the U.S. dollar’s convertibility to gold, summarizes most of them, backed with astonishing numbers. For example, up until Washington’s decision to end the dollar-gold standard, productivity rose steeply and wages, unlike nowadays, didn’t fall behind.

In other words, the rising value of goods and services translated into rising pay for workers. The 119% increase in productivity from 1947 to 1979, the last year when these indicators were moving together, was closely followed by a 100% positive change in the average hourly compensation. Since then, until 2009, productivity has grown by a whopping 80%, while compensation scored only an 8% increase, the quoted data shows.

Why the Birth of Bitcoin Can Be Traced Back to 1971

Similar trends can be observed with many other pairs of indicators. Divergence between real GDP per capita and average real wage in the U.S. has been growing steadily since the 70s, according to the calculations of the Bureau of Economic Analysis and the Bureau of Labor Statistics. The consumer price index skyrocketed after the untying of the dollar from gold. The same applies to the median sales price of new homes sold in the country. And against this backdrop, divorce prevalence and incarceration rates in the U.S. increased markedly.

The post-war semi-gold standard mitigated income inequality in the United States, which had been rising in the years following the establishment of the Federal Reserve System in 1913 and jumped again after the U.S. government decided to turn the dollar into purely fiat money. Since 1971, the top 1% of earners have seen their income grow significantly, while that of the bottom 90% has remained almost unchanged for decades. The curves crossed somewhere in the beginning of the century and in the years after the 2008 global financial crisis the rich have been getting richer, while the poor have been getting poorer again.

Other negative trends after the abolition of the last gold standard include the ballooning U.S. national debt, from well below a trillion dollars in the 70s to over $20 trillion in 2018. As of June 2019, federal debt held by the public amounted to $16.17 trillion. Last year it was approximately 76% of GDP and the Congressional Budget Office expects it to reach over 150% by 2040. At the same time, the United States’ goods trade balance has dropped dramatically, reaching a record low of almost -$80 billion at the end of December.

Why the Birth of Bitcoin Can Be Traced Back to 1971

Will the Next Reserve Currency Be Crypto?

Bretton Woods, despite its positives, had some significant flaws that eventually led to its demise. Unlike the gold it was backed by, the dollar, which was the system’s reserve currency, could be manipulated by the powers in Washington in accordance with America’s own interests, and it was. Dollars were supposed to provide liquidity to the world economy but initially the United States wasn’t printing enough of them. As a result, its partners experienced shortages of convertible currency. And in the later years the opposite occurred, the greenback was too inflated by the U.S. It quickly became evident that the agreement is tailored to the interests of the United States, which at the time of its signing owned two thirds of the global gold reserves.

Why the Birth of Bitcoin Can Be Traced Back to 1971

In essence, the monetary union gave too much power to the U.S. and was only going to work as long as other countries were willing to accept the status quo. With Washington exporting inflation to the rest of the world, however, its partners started to convert large amounts of dollars into gold while the U.S. was ratcheting up the political pressure on them to accept and keep its printed money at fixed rates against their national currencies. Eventually, countries like France decided that enough is enough and started selling their dollars for gold. The U.S. then broke the link between its currency and the precious metal, which, along with the return of floating exchange rates, effectively put an end to Bretton Woods and the gold standard.

A similar situation currently exists in Europe’s own monetary union. Critics say much of its problems stem from its very design, which heavily favors the interests of Germany, the continent’s economic locomotive and one of the world’s largest exporters. The government in Berlin is a supporter of low inflation which ensures German high tech industrial exports continue to bring high revenues. However, in the Eurozone’s southern flank countries such as Italy, Spain, Portugal, and Greece need higher inflation to remain competitive as exporters.

It is becoming evident that a reserve currency beyond the control of various governments would be an improvement over fiat money subordinate to the national interests of one superpower or another. A cryptocurrency that serves as a means of exchange, store of value, unit of account, and which cannot be inflated or deflated through biased political decisions could be an instrument that would facilitate global commercial and financial transactions without favoring a side. Besides, participating parties would own the real asset itself and not some derivative.

Why the Birth of Bitcoin Can Be Traced Back to 1971

Satoshi Nakamoto must have thought about these matters when designing Bitcoin. The person, or persons, behind this name listed a symbolic date as their birthday on Satoshi’s P2P Foundation profile – April 5, 1975. Be it intentional or serendipitous, that’s a date which evokes the historical development of relations between people, government and money.

On April 5, 1933, through Executive Order 6102, the U.S. government forbid its citizens from “hoarding of gold coin, gold bullion, and gold certificates.” The aim was to artificially increase demand for its fiat currency at the expense of demand for gold. During the Bretton Woods era, only foreigners, and not U.S. citizens, were allowed to convert dollars into gold, which is arguably one of the system’s flaws. The order was reversed in 1975, making gold possession in the United States legal again.

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Do you think the world’s next reserve currency will be a cryptocurrency? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock, wtfhappenedin1971.com, World Bank.


Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy bitcoin with a credit card.

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