As the COVID-19 pandemic continues around the world, many governments are engaging various stimulus programs to keep economies afloat. The U.S. is leading the way, spending trillions of dollars on the rescue packages; in addition, another trillion-dollar “infrastructure plan” is underway. Just last week, when the bipartisan infrastructure bill was sent to Congress, a crypto provision was included as one of the funding sources of this infrastructure plan. The proposal is to raise as much as $28 billion as crypto tax revenue in the next 10 years.
It may seem like bad news for crypto operators and investors when the taxman is knocking on doors, however, we know that this is an inevitable outcome as the cryptocurrency industry continues to thrive in the global economy. In a way, we see this news as somewhat positive, and even assuring that this industry is here to stay. The active dialogues on Capitol Hill around potential crypto regulations and how they should be taxed is an indication of industry maturity. If the IRS is eyeing this sector to provide substantial revenue to fund future government plans, it also means that this technology will be supported and expected to grow exponentially.
While China is taking a serious stance to crack down on crypto mining and exchange activities, America is investing in it and allowing it to thrive under its supervision, so that the government can reap the potential economic benefits from this industry. Although the Fed has remained undecided on CBDC issuance, it has publicly indicated support on private sector U.S. dollar stablecoins (see top stories below). From these government actions, we can safely assume that America will likely stay at the forefront of crypto innovation, and it will eventually reap the most benefits associated with its growth. Now the question is: which side are you on?
- Fed Board of Governors and Vice Chair Randal Quarles shared his view on CBDC (Central Bank Digital Currency) last month and why he thinks the U.S. does not need one. The reasons include an acknowledgement and support of the existing private sector stablecoins, such as USDT and USDC.
- “The B Word” conference — a virtual conference aimed at demystifying bitcoin for institutions — featured Elon Musk, Cathie Wood and Jack Dorsey talking about crypto and the future of the financial economy, took place on July 21. The final consensus from these investors and entrepreneurs is that Bitcoin is going to change the world.
- Digital currency company Circle announced that they will go public via a SPAC at a $4.5 billion valuation. The announcement comes as regulators seek more clarity around the trading and issuers of stablecoins — digital currency that’s designed to be less volatile than other crypto — with one proposal suggesting they obtain bank charters.
- Circle and Paxos released breakdowns of the collateral used to back their stablecoins. Circle’s USDC is backed by 61% cash and cash equivalents, while Paxos’ BUSD is sitting at 96%. Investor demand and regulatory pressure is mounting for greater transparency from stablecoin issuers.
- PayPal users can now buy $100,000 of bitcoin and other digital assets per week, up from a previous limit of $20,000. PayPal first started letting users buy cryptocurrency in October 2020 and was seen as a key step in mainstream adoption of the asset class.
- $2 trillion money manager Capital Group takes a 12.2% stake in Bitcoin bull MicroStrategy. Capital Group is now the third-biggest shareholder in MicroStrategy, with the largest shareholder being MicroStrategy Chief Executive Michael Saylor, followed by BlackRock Inc.
- Bitcoin mining goes nuclear! Californian nuclear energy provider Oklo partners with bitcoin mining firm Compass for a 20-year contract. At the same time, U.S. bitcoin mining facility operator Compute North boasts an ambition to scale up its capacity by 1.2 gigawatts over the next 12 months amid a global supply crunch for hosting bitcoin miners
- The unit of Boston-based asset manager Fidelity Investments Inc. plans to increase staff by 70% in crypto asset technology and operations in Dublin, Boston and Salt Lake City. This is due to an increase in demand and interest in crypto investments.
- A crowdfunding round for the Ethereum-themed documentary, dubbed Ethereum: The Infinite Garden, has surpassed its goal of 750 Ether, raising 1,035.96 ETH worth $1.9 million in 3 days.
- Crypto usage in Turkey increased elevenfold. A new survey conducted in Turkey reveals how the perception of cryptocurrencies has evolved over the last year. A major crypto exchange in the country, Paribu, reported the adoption speed with its user count, which grew from 600,000 to over 4 million within a year.
- BitMEX co-founder Arthur Hayes shares his views on the future of Tether, Facebook’s stablecoin ambitions, and central bank digital currencies.
- Anthony Scaramucci — the New York financier and former White House official — jumped into the crypto fray with his asset management company Skybridge Capital. In this podcast, he talked about his investment thesis, the importance of having a crypto allocation in your investment portfolio, and how he sees the industry will go.
- The next generation of attorneys: Why it’s important for academia to teach our future generation of law students about Bitcoin and digital money technologies — by Andrew Rossow at Bitcoin Magazine.
- Morgan Creek Capital Management CEO Mark Yusko mentioned in an interview that the daily Bitcoin price has nothing to do with the value of the network. He maintains a bullish outlook on the long-term investment perspective.
Tokenomy Earn latest rates:
- Earn 5% on TEN 90-day fixed deposit
- Earn 7% on BTC 90-day fixed deposit
- Earn 8.5% on USDC 90-day fixed deposit
- Earn 12% on IDK 1 year fixed deposit (vs 2.75% BCA)
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