Since It Adopted Bitcoin As Legal Tender, The World Is Looking At El Salvador
According to all metrics, El Salvador is all the rage right now. When the government announced that their citizens and all economic actors are legally allowed to use Bitcoin as legal tender, headlines all over the world reported on the news. But interest in the country is growing steadily since, from articles and features in […]
According to all metrics, El Salvador is all the rage right now. When the government announced that their citizens and all economic actors are legally allowed to use Bitcoin as legal tender, headlines all over the world reported on the news. But interest in the country is growing steadily since, from articles and features in all kinds of media, to Google interest and searches. The world’s eye is on El Salvador.
People all over the world are searching for information on real state and citizenship in El Salvador. Those are extremely serious topics, even if the search is casual or exploratory. Just look at the spike in these graphics:
Media outlets from all over the world are trying to figure out President Bukele’s line of thought, long-term plans, and strategy. They’re also struggling to understand Bitcoin, what does it do and how does it do it. They can’t seem to understand what are the advantages and keep comparing it to the legacy financial system in a way that makes the status quo look good.
El Zonte’s mini bitcoin economy 26 miles (43 kilometers) from the capital came about through an anonymous donor who started working through a local nonprofit group in 2019. Supporters of the financial change point to it as a demonstration case for how digital currency could help in a country where 70% of the people don’t have bank accounts.
President Nayib Bukele, who pushed through the bitcoin law, touts it both as a way to help those many Salvadorans without access to traditional banking services and as a path to attract foreigners with bitcoin holdings to invest in El Salvador, which is the first nation to make the cryptocurrency legal tender.
That “path to attract foreigners” seems to be working, if we take Google Searches as a valid indicator. The game is afoot, but it’s just starting, though. We’ll see how this experiment goes.
As for the much smaller experiment that’s Bitcoin Beach, USA Today found a way to attack it.
David Gerard, author of “Attack of the 50 Foot Blockchain,” said El Zonte is an artificial demonstration.
At Bitcoin Beach, he said, “the bitcoins are traded inside Strike. They don’t actually move on the bitcoin blockchain or anything.”
Gerard said it appears to work because the bitcoin donor keeps pumping bitcoin into the village’s system. “That’s not a proof of concept that works. That shows that you can trade this stuff if you’re not trading actual bitcoins and someone massively subsidizes it.”
They not only found the one so-called crypto-journalist that despises Bitcoin, but they printed something like “the bitcoins are traded inside Strike. They don’t actually move on the bitcoin blockchain or anything.” The app uses the Lightning Network to process transactions. That’s Bitcoin’s answer to those that say that it isn’t fast or scalable enough.
In the second layer, the Lightning Network processes transactions. Eventually, the system settles those transactions in the first layer, in the blockchain. Does David Gerard not know this? Or is he being dishonest and muddying the waters? Does he not care about what this means for people in El Salvador?
“Our donor made three deliveries of $40, converted to bitcoin, for each of the community’s 500 families, and they were trained to use the application and now it’s normal to buy with bitcoin,” Martínez said.
Does that sound like a subsidized economy to you?
Plus, look at this picture heavy thread to see what the Bitcoin community is doing for El Salvador:
The president of the Central American Bank, Dante Mossi, said in a press conference: “Bitcoin is a really big deal for the El Salvadorans, and we’re really proud that they’ve made us part of this new policy.” The conference title was: “In Reference To El Salvador’s Announcement About The Use Of Bitcoin.”
Amazon has placed a job advertisement for a digital currency and blockchain executive lead on its website, indicating future crypto integration.
Amazon Posts A Position For A Blockchain Executive Lead
The job description seeks for someone to “own the vision and strategy for Amazon’s Digital Currency and Blockchain strategy and product roadmap,” as well as someone with a “Deep grasp of the digital / cryptocurrency ecosystem and associated technologies.”
The position would be located inside Amazon’s Payments Acceptance & Experience team and would “create Amazon’s Digital Currency and Blockchain strategy and product roadmap.”
While this appears to be a key position within the firm, it is not the only one based on blockchain. A job search for ‘blockchain’ on Amazon’s job board yields 73 results for various blockchain specialist and development positions.
“We believe that the future will be built on new technologies that enable modern, rapid, and inexpensive payments, and we intend to offer that future to Amazon customers as quickly as possible,” the company declared, according to Business Insider’s Eugene Kim.
New: Amazon confirms — for the first time — interest in accepting crypto.
“We believe the future will be built on new technologies that enable modern, fast, and inexpensive payments, and hope to bring that future to Amazon customers as soon as possible.”https://t.co/DsiOcj3bQ5
Amazon Does Not Accept Cryptocurrency As Payment For Its Items
Amazon Web Services, the company’s cloud-computing division, provides a managed blockchain solution.
However, Amazon does not accept cryptocurrency as payment for its items. Amazon CEO Andy Jassy (then CEO of AWS) stated in 2017 that the business was not especially focused on blockchain technology, while he admitted that Amazon was “watching it closely.”
Bitcoin and other digital currencies have gained in popularity in recent years, leading to increased institutional use. Facebook, which has funded a digital currency initiative called Diem, is another example of a technology company warming up to cryptocurrencies.
In May, Apple said that it was seeking for a lead negotiator to form agreements with “alternative payments” partners, with cryptocurrencies listed as one possible area of competence.
Massena, a small New York town along the Canadian border has put the brakes on its crypto mining operations. The town has imposed a 90-day moratorium on new crypto miners, during which it will draw up fresh regulations to ensure that mining facilities and rigs are prevented from littering areas.
Canadian Border Town Suspends Crypto Mining Operations
As per a report published by the Associated Press, Massena has suspended all new mining operations for Bitcoin and other cryptocurrencies for 90 days. The town’s supervisor Steve O’Shaughnessy said that the decision was taken after trailers filled with mining equipment started popping up on the main road.
“We don’t want Massena to be filled up with these sea boxes throughout the town,” he asserted. “We don’t want it littered with these trailers that are pumping out Bitcoin.”
Town officials are planning to leverage the 90-day restriction to formulate rules that keep Massena’s roadsides uncluttered and make mining facilities more “presentable.”
“We just want to make sure if they’re going to come here, that it’s a nice presentable building,” O’Shaughnessy stated.
Meanwhile, the town’s power supplier Massena Electric is in negotiations with three crypto miners. According to a WWNY report, the company is making sure that any deal it makes with these businesses protects its customers, who will also benefit from the increased sales. The energy supplier also has its own moratorium on working with new mining firms.
China’s Crypto Crackdown Brings Opportunities for Massena
Like many other North American towns, Massena has seen an influx of crypto miners ever since China banned mining operations in many of its provinces. Ousted companies scouring for greener pastures look towards the region for cheap electricity and legal support.
This bodes well for border communities that were hammered by job losses in factories for nearly a decade. The emergence of Bitcoin and other crypto mining companies indicates that new jobs are coming out and industrial activity is regaining its lost momentum in places like Massena.
As reported earlier, North America’s contribution to the global Bitcoin mining share is steadily increasing. The United States is now the second-largest hub for crypto mining with 17% of the world’s BTC miners. That is a staggering increase of 151% from last year’s mining rates in September. With more crypto miners flocking to the region, it’ll become easier for the industry to seek the support of regulators to continue their expansion in the future.
Uniswap Labs, the software development studio, revealed in a blog posting on Friday that it is restricting access to some tokens involving tokenized stocks and derivatives on its supporting protocol interface. The news came after the announcement by the regulators of the United States that they are going to increasingly watch out for these types of products.
Uniswap Labs Restricts Access to Tokenized Stocks and Derivatives
While explaining the decision of restricting the tokens following the announcement made by the US regulators, they mentioned the evolving regulatory scenario. The blog entry said:
“Consistent with actions taken by other Defi interfaces, we have taken the decision to restrict access to certain tokens through app.uniswap.org.”
Along with this, other crypto firms have canceled their tokenized stock products in recent weeks, and one such example is Binance. Though it should be noticed that Uniswap, unlike Binance, is a decentralized exchange and it is restricting access through its own interface.
Gary Gensler, the Chairperson of the Securities and Exchange Commission said in a speech on Tuesday in front of the Bar Association that stock tokens on both centralized and decentralized platforms are required to be registered with the regulator.
Limited Access to over 100 Tokens
As stated by the Uniswap Labs, the statement read:
“Today, consistent with actions taken by other Defi interfaces, we have taken the decision to restrict access to certain tokens through app.uniswap.org. Importantly, the Uniswap Protocol — unlike the interface — is a set of autonomous, decentralized, and immutable smart contracts. It provides unrestricted access to anyone with an Internet connection.”
The SEC and CFTC have similarly led authoritative incursions into the token market and have targetted certain asset classes for possible fraud and illegal activities.
The Github repository has the list of all the tokens that are now going to become unsupported on the Uniswap web app and it was published by the Uniswap Labs.
Elon Musks’ revelation that he holds Ethereum gave it the much-needed nudge to break above the $2000 psychological level, Since then ETH has been trading in green. However, ETH should now hold up well to continue the uptrend or a sideways action will bloom again. ETH has been trading in the $2,007.48 – $2,156.63 range, …
Elon Musks’ revelation that he holds Ethereum gave it the much-needed nudge to break above the $2000 psychological level, Since then ETH has been trading in green. However, ETH should now hold up well to continue the uptrend or a sideways action will bloom again.
ETH has been trading in the $2,007.48 – $2,156.63 range, After opening the day at $2039 it has continued to rise and is trading at $2152 up by 4.1% in the last 24 hours. The weekly trend also looks good as it has risen 14.9% in the last 7 days.
Popular Analyst and trader Rekt Capital has charted key levels for ETH to hold over the weekend. According to him, ETH should have a weekly candle close above $2058 to reclaim its multi-month higher low.
While this is for the short term, making a long-term ultra bullish case for ETH is analyst Crypto Wolf on Twitter. The analyst says ETH will hit $4k in the next 6 months. When this scenario plays out ETH hitting $10K will be an obvious possibility.
London Hardfork to be delayed?
The much-awaited deployment of London Hardfork which was scheduled for Aug 4 can now be tentatively postponed. According to the ETH2 developers, the team will consider the optimal solution for network security, and any delay in the hard fork will be due to security concerns.
Prior to the London hard fork, the ETH2 developer team addressed the concerns of miners and traders. The team discovered and addressed a flaw in the code. However, if there are any more security issues, the hard fork may be postponed.
On the next AllCoreDevs call, the developers will debate the best technique for securing the Ethereum network.
With a possibility of delay in London Hardfork, ETH could fall short of a strong catalyst to uphold its price action. Hence, it is to be watched out for how ETH performs alongside the support of the broader crypto market.