cryptocurrency Archives | Page 26 of 37 | Digital Watch Observatory

Trump-backed crypto project gains 100,000 signups before token launch

World Liberty Financial, a crypto project backed by Donald Trump, has secured over 100,000 signups ahead of its WLFI token launch on 15 October. The WLFI token, built on Ethereum as an ERC-20 asset, will serve as the governance token for the decentralised finance (DeFi) platform, allowing users to borrow, lend, interact with liquidity pools, and transact with stablecoins. In the US, however, only accredited investors will have access.

The platform’s team, including Zak Folkman, reiterated its plans to raise $300 million through the WLFI token sale, aiming for a $1.5 billion valuation. The project will initially launch on Ethereum with plans to expand to layer-2 networks. Former President Trump has pledged to turn the US into the world’s ‘crypto capital’ if elected in November, as he leads Kamala Harris by 9% on the Polymarket betting platform.

Stablecoins herald a new era in e-commerce payments with significant growth in Singapore

Stablecoins are rapidly emerging as a vital solution for businesses seeking to streamline payment processes, with Singapore recently hitting a milestone of $1 billion in stablecoin payment value. As a stable alternative to both traditional fiat and volatile cryptocurrencies, stablecoins are increasingly being adopted for everyday transactions, particularly within the e-commerce sector. Recent studies indicate that 64% of consumers are open to using cryptocurrencies and stablecoins for payments, with a growing number of retailers planning to accept them within the next couple of years.

These digital currencies, tethered to stable assets like the US dollar or Euro, offer notable advantages, such as faster transactions and reduced volatility. The stability allows businesses to mitigate the risks associated with sudden price fluctuations, making it easier to lock in profits. Furthermore, with stablecoins expanding across various blockchain networks, including faster and more cost-effective options like Polygon and Solana, they are becoming more accessible to a wider range of businesses. This shift not only simplifies payment processing but also enhances cross-border transactions by eliminating currency conversion hassles.

As regulations around cryptocurrencies continue to evolve, stablecoins are well-positioned to lead the charge in the transformation of financial settlements. With their increasing normalisation in markets like Singapore, these digital assets are set to play a crucial role in the future of e-commerce. The potential for stablecoins to overcome many of the challenges faced by traditional payment systems suggests that they will soon become a mainstream choice for businesses worldwide, ushering in a new era of digital financial solutions.

CBDCs face resistance from key central banks

Australia, Canada, and Colombia have taken a step back from launching central bank digital currencies (CBDCs), raising concerns about their necessity and potential risks. While many governments push forward with digital currency plans, these countries’ central banks argue that existing payment systems already serve the public well. They also fear CBDCs could destabilise the financial system and accelerate the decline of cash.

The Reserve Bank of Australia and the Bank of Canada have both scaled down their CBDC projects, citing the need for further research. Colombia’s central bank similarly expressed doubts about the need for a CBDC, whether retail or wholesale. The decision reflects broader concerns within the financial industry, as critics warn that CBDCs could infringe on privacy and give governments excessive control over individual accounts.

Although CBDCs are still advancing in other parts of the world, the recent statements signal that their implementation may not be as inevitable as once believed. Central banks remain cautious, and the debate over the future of digital currencies continues.

Bitcoin set for gains as US election nears

Bitcoin’s bullish trajectory remains strong, with the cryptocurrency expected to reach $100,000 soon, regardless of the upcoming US election, according to Dan Tapiero of 10T Holdings. Speaking at a conference in Salt Lake City, Tapiero explained that Bitcoin’s rise is inevitable, driven by global trends and growing institutional interest.

The presidential race between Donald Trump and Kamala Harris highlights different attitudes towards crypto, with Trump promising to make the US a crypto hub and remove SEC Chair Gary Gensler. Harris, though quieter on the issue, recently emphasised blockchain’s importance. Despite these political shifts, industry experts believe Bitcoin will benefit from the election either way, citing concerns over US debts and deficits as a potential driver.

With the April Bitcoin halving boosting prices historically, the fourth quarter looks promising. The election may pass, but blockchain technology’s role in reshaping finance remains far more significant than any political outcome, Tapiero noted.

FBI creates token to expose crypto fraud ring

The FBI has successfully orchestrated a crypto sting operation using a token it created to investigate market manipulation. The NexFundAI Token, launched on the Ethereum blockchain, was part of the operation that led to the indictment of 18 individuals and entities for their involvement in fraudulent activities.

The investigation uncovered a sophisticated scheme involving pump-and-dump operations and wash trading, which artificially inflated token prices. Over $25 million worth of cryptocurrency was seized, and several trading bots responsible for manipulating markets across 60 different tokens were shut down.

This operation, known as “Operation Token Mirrors,” is seen as a warning to crypto investors about the risks of market manipulation. Authorities, including the FBI and SEC, are continuing to investigate those involved in fraudulent crypto schemes.

El Salvador: Blueprint for the bitcoin economy

On 7 September 2021, El Salvador became the first country in the world to adopt bitcoin as legal tender, sparking global discussions about the role of cryptocurrencies in national economies. This groundbreaking decision transformed El Salvador into a beacon for financial innovation as other nations began to closely monitor its bold experiment. Initially seen as a monetary gamble, El Salvador’s decision has evolved into a strategy with far-reaching implications, both domestically and internationally. While the International Monetary Fund (IMF) and other financial institutions have raised concerns about potential risks, El Salvador’s commitment to cryptocurrency adoption has set a precedent by reshaping global economic systems.

From experiment to national strategy

When El Salvador made bitcoin legal tender, it was an ambitious experiment aimed at solving several economic challenges. The country, reliant on remittances and with a significant part of its population unbanked, saw cryptocurrency as a way to promote financial inclusion. Today, with 5,748.8 bitcoins held in national reserves, El Salvador’s leadership continues to buy bitcoin, signalling confidence in the long-term potential of the digital asset. In this way, the initial idea of bitcoin adoption has transformed from a simple test into a cornerstone of the nation’s financial strategy. El Salvador is now laying the foundation for broader economic development by positioning itself as a crypto-friendly environment.

Economic impact: benefits and challenges

El Salvador’s embrace of bitcoin has left a significant mark on its economy, though it has not been without its challenges. One of the major benefits has been the ability to streamline remittances, allowing Salvadorians abroad (of which there are many in emigration) to send money home using bitcoin, cutting out the traditional intermediaries and lowering fees. This move has made remittances faster, more affordable, and more accessible.

The country has also witnessed a surge in foreign investment, as businesses interested in cryptocurrency see El Salvador as an attractive hub. Crypto enthusiasts and digital nomads have flocked to the country, boosting tourism and putting El Salvador on the global map as a bitcoin-friendly destination.

Moreover, El Salvador’s innovation goes beyond adopting bitcoin as legal tender; it has also ventured into the creation of bitcoin bonds and infrastructure projects like ‘Bitcoin City.’ President Nayib Bukele’s vision for Bitcoin City includes a tax-free, crypto-friendly zone designed to attract foreign investment. The city, with a projected USD $1.6 billion investment, will feature modern infrastructure and create an environment conducive to the growth of blockchain and cryptocurrency businesses. If successful, Bitcoin City could become a global hub for digital finance, further cementing El Salvador’s position at the forefront of this financial revolution.

However, bitcoin volatility remains a persistent issue. Critics argue that heavy reliance on such a fluctuating asset could jeopardise financial stability. Unpredictable price swings in the crypto market pose a risk, potentially leading to instability in the national economy. While El Salvador continues to bet on bitcoin’s long-term success, these challenges highlight the need to carefully navigate the balancing act between innovation and economic resilience.

Educating for a bitcoin future

One of the latest initiatives El Salvador has undertaken is its Bitcoin certification programme. Spearheaded by the National Bitcoin Office (ONBTC), the programme aims to educate 80,000 government employees on the intricacies of bitcoin and blockchain technology. This strategic move underscores the nation’s commitment to integrating bitcoin into its broader governance structure.

By equipping civil servants with essential knowledge, El Salvador ensures that bitcoin adoption is not just a top-down policy but becomes deeply embedded in the daily functioning of the state. Beyond focusing on external performance, El Salvador is working to seed crypto into the core of its state organisations, ensuring that government employees fully understand the nature of cryptocurrency and not merely reproduce its use. This educational initiative is also expected to create a ripple effect across other sectors, solidifying El Salvador’s place as a leader in the global crypto space.

Global influence and partnerships

El Salvador’s progressive approach to cryptocurrency is beginning to influence other nations. Argentina, for example, has recently started collaborating with El Salvador to learn from its experience. Argentina’s pro-crypto president, Javier Milei, has shown interest in using cryptocurrencies to stabilise the country’s economy. This collaboration is a testament to the growing recognition of El Salvador’s pioneering role in this space. As more countries begin to explore cryptocurrency adoption, El Salvador’s approach provides a practical case study, proving that integrating digital assets into a national economy can have tangible benefits.

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Regulatory challenges and criticism

Despite the enthusiasm surrounding Bitcoin adoption, El Salvador has faced significant criticism from international organisations. The IMF has been particularly vocal, warning that the adoption of cryptocurrency as legal tender poses risks to financial stability, consumer protection, and market integrity. These warnings highlight the regulatory challenges El Salvador faces, especially when dealing with global institutions that remain sceptical of digital currencies. However, the country has responded by reinforcing its regulatory frameworks and increasing transparency around its bitcoin activities. While the road is not without obstacles, El Salvador’s approach showcases a willingness to navigate these complexities and maintain its position as a leader in the crypto space.

El Salvador’s Chivo wallet project

One of the most significant elements of El Salvador’s bitcoin adoption is the introduction of the Chivo wallet, which plays a pivotal role in promoting financial inclusion. Chivo, the government-backed digital wallet, allows Salvadorians to easily access and use bitcoin, providing a crucial gateway to financial services for those previously excluded from the traditional banking system.

To help citizens become familiar with the cryptocurrency, the government offered USD $30 worth of bitcoin to each individual through the Chivo wallet, the country’s digital currency platform. However, public reception was mixed, with an August 2021 poll indicating that 70% of respondents opposed the initiative, and only 15% expressed confidence in bitcoin. Concerns about volatility also led to protests in San Salvador, as many feared the potential for drastic price fluctuations.

The Chivo wallet, available on mobile devices, empowers even the unbanked population to participate in the digital economy by enabling seamless transactions and easy access to remittances sent from abroad. By leveraging this digital wallet project, El Salvador has not only embraced crypto but has also laid the foundation for a more inclusive financial ecosystem. This approach serves as a model for other developing nations, showing how the integration of a government-supported crypto platform can help bypass traditional banking barriers, delivering financial tools to millions and boosting both individual economic prospects and national economies.

The broader global implications

El Salvador’s bold experiment is already making waves across the world. The Central African Republic has followed in its footsteps, adopting bitcoin as legal tender. As other nations watch closely, it is becoming clear that El Salvador’s approach could inspire a global movement towards cryptocurrency-driven economies. For countries struggling with inflation, financial exclusion, or dependence on foreign currencies, bitcoin adoption represents an alternative path. The world sees that cryptocurrency is not just a speculative asset—it can be a powerful tool for economic development and innovation.

A leader in the new digital financial order

El Salvador’s decision to adopt bitcoin as legal tender has positioned the country at the forefront of a financial revolution. What started as a daring experiment has blossomed into a comprehensive national strategy with global implications. Despite the challenges, including market volatility and regulatory pushback, El Salvador’s proactive approach sets a powerful and inspiring example for other countries. By embracing cryptocurrency from the deepest level of society, from education to infrastructure, El Salvador is showing the world that digital currencies can drive economic progress. As more nations observe its success, the small Central American nation may just be paving a historical way for global financial transformation.

Worldcoin shifts focus to Asia for biometric tech

Worldcoin is redirecting its attention from Europe to Asia, aiming to engage markets that are more receptive to its biometric technology. The company, co-founded by Sam Altman, seeks regions where local businesses and governments embrace innovative solutions. Fabian Bodensteiner, managing director of Worldcoin’s European operations, highlighted the need to prioritise markets that present the most significant business opportunities, as the company continues to navigate its limited workforce.

The shift comes amid regulatory scrutiny in Europe, with Bavaria’s data protection authority set to make a decision that could affect Worldcoin’s operations in the region. In May, Hong Kong’s privacy regulator found that Worldcoin had violated local privacy laws by excessively handling biometric data. However, a spokesperson for the Worldcoin Foundation asserted the company’s commitment to operating within legal frameworks concerning data collection and usage.

Despite stepping back from Europe as a primary focus, Worldcoin has expanded into Poland and Austria this year and maintains its presence in Germany. Bodensteiner affirmed the company’s intention to remain engaged in the European market, stating, “We want to stay in the conversation and we want to stay committed to the market.” As of now, Worldcoin is trading at $1.92, reflecting a 4.44% increase.

Telegram unveils new features amid Toncoin market struggles

Telegram recently introduced several new features, including the ability to send gifts, improved moderation tools, and enhanced video chats for iOS and Android users. However, Toncoin (TON) has failed to capitalise on these developments, with the coin’s price continuing to drop despite favourable market conditions. TON has fallen 2.7% in the past 24 hours and over 10% during the last week.

Telegram’s CEO, Pavel Durov, revealed that users could convert some of these limited-edition gifts into TON-based NFTs, adding an extra layer of functionality to the platform. Yet, despite these innovations, TON’s price has struggled to recover from its mid-2024 downturn, following Durov’s arrest.

Though TON traded above $8 earlier this year, it now sits at $5.22. Despite the slow recovery, the community remains hopeful that future developments might turn the tide for the coin.

Bitcoin faces slight drop but whales hold steady

Bitcoin briefly surpassed the $62,000 mark earlier in October before seeing a slight correction, with the price settling around $61,950. Despite the dip, data shows that large holders, known as whales, didn’t participate in the recent sell-off. Whale transaction volumes also dropped by nearly half, suggesting the possibility of price consolidation and reduced volatility.

Over the past week, Bitcoin has seen a net outflow from centralised exchanges, with around $153 million withdrawn. This could indicate growing accumulation as investors maintain bullish expectations for the cryptocurrency this October.

However, the broader crypto market remains susceptible to external influences, with geopolitical tensions and macroeconomic events likely to affect price movements in the near term.

Argentina looks to Bitcoin as El Salvador’s president shares crypto advice

El Salvador’s President Nayib Bukele has met with Argentina’s President Javier Milei in Buenos Aires to discuss shared economic and security challenges. Their discussions included Milei’s zero-deficit budget strategy and Bukele’s experiences with debt management. Both leaders found common ground in their political journeys, particularly Bukele’s struggle with parliamentary opposition when he first took office.

During the visit, Bukele also met with Argentine senators and Vice President Victoria Villarruel to advise on cryptocurrency matters. Villarruel expressed significant interest in Bitcoin and El Salvador’s innovative use of Volcano Bonds for financing. These discussions signal Argentina’s growing interest in digital assets as part of its financial future.

Meanwhile, Uruguay has taken a major step in regulating cryptocurrency, passing a law that creates a clear framework for digital asset use. The law grants the central bank oversight of virtual asset service providers, ensuring compliance with anti-money laundering regulations whilst paving the way for new opportunities in the crypto sector.