A recent survey by Deutsche Bank reveals that cash is likely to remain a staple for consumers, despite the global interest in Central Bank Digital Currencies (CBDCs). The survey, which gathered responses from 4,850 individuals across Europe, the UK, and the US, found that 59% of participants believe cash will always be relevant. Additionally, 44% of respondents prefer using cash over CBDCs, while only 16% think digital currencies will become mainstream.
The report highlights that although the COVID-19 pandemic accelerated the shift towards digital payments—especially among Gen Z—many consumers remain hesitant about CBDCs. Privacy concerns significantly influence this reluctance, with respondents in the US favouring cryptocurrencies for better privacy than government-backed options. In fact, 21% expressed a preference for private cryptocurrencies like Bitcoin, while many Europeans preferred the anonymity that cash provides.
The skepticism surrounding CBDCs is evident in Canada, where a Bank of Canada report indicated that 86% of Canadians oppose the idea, with 92% still preferring cash over a potential digital Canadian dollar. As central banks continue to explore CBDC applications, user confidence remains a key barrier to widespread adoption.
Brazilian authorities have uncovered a massive cryptocurrency money laundering operation worth $9.7 billion, leading to multiple arrests across major cities, including São Paulo, Fortaleza, and Brasília. The investigation, named ‘Operation Niflheim,’ targeted suspects believed to be laundering funds from drug trafficking and smuggling through crypto assets.
Officials executed 23 search warrants and arrested eight individuals, focusing on a network of companies accused of moving billions using shell firms, tax dodgers, and foreign exchange companies. Investigators discovered that over half of the deposits were linked to individuals with criminal backgrounds, highlighting the extensive use of cryptocurrencies in illegal activities.
The Federal Police have also frozen more than $1.58 billion in bank and crypto exchange accounts as part of the operation. The investigation, ongoing since 2021, underscores the growing role of cryptocurrencies in facilitating financial crimes in Brazil.
Securitize, a tokenisation platform backed by BlackRock, has announced a new partnership with the Wormhole Foundation to enhance the cross-chain capabilities of its tokenised assets. The collaboration revealed on 20 September, will allow future assets issued through Securitize to leverage Wormhole’s blockchain interoperability framework, improving connectivity across different blockchains.
As part of the agreement, Wormhole’s messaging protocol will be customised by Securitize using its own smart contracts to meet the regulatory requirements of asset managers. This integration is seen as a major step towards bridging the gap between traditional and decentralised finance, facilitating faster and cheaper transactions across multiple blockchains.
The partnership follows Securitize’s recent $47 million funding round, led by BlackRock, with investors such as Hamilton Lane and Tradeweb Markets also participating. Since the announcement, Wormhole’s native token has risen by 6%, reflecting the growing interest in real-world asset tokenisation.
German authorities have shut down 47 cryptocurrency exchange services in a major crackdown on illegal money laundering. The Federal Criminal Police Office (BKA) and the Central Office for Combating Internet Crime led the operation, targeting platforms that allowed users to exchange conventional currencies and cryptocurrencies without verifying their identities. These services bypassed the ‘know-your-customer’ (KYC) rules, enabling users to trade cryptocurrencies like Bitcoin and Ethereum quickly and anonymously.
Criminals reportedly used these exchanges to conceal the origins of illicit funds, often obtained through dark web drug sales or ransomware attacks. As part of the operation on 20 August, authorities confiscated 13 crypto ATMs and seized nearly $28 million in cash from 35 locations across Germany. Financial watchdog BaFin led the raids, targeting machines operating without the necessary licences, which posed significant money laundering risks.
The closure of these exchanges is part of a wider effort to disrupt cybercrime networks. Investigators managed to secure vital user and transaction data, which could assist in future money-laundering investigations. It follows earlier German crackdowns, including the seizure of ChipMixer, a platform involved in laundering €90 million in crypto.
Russia is planning to introduce a new tax system for cryptocurrency miners, basing it on electricity usage rather than the value of mined tokens. Deputy Finance Minister Ivan Chebeskov revealed on 18 September that the government is considering an excise tax on the electricity consumed by miners as a temporary solution before implementing a tax on their profits. The authorities have faced difficulties in calculating miners’ earnings, particularly as some do not disclose all of their wallets.
The proposed tax follows Russia granting legal status to industrial crypto mining earlier this year. Lawmakers are expected to pass legislation on the crypto mining tax by the end of the State Duma’s autumn session. The government’s long-term aim remains profit-based taxation, but electricity consumption is seen as a more practical approach for the time being, especially given the complexities of accounting in the crypto industry.
While cryptocurrency exchanges remain unregulated in Russia, there have been calls for the establishment of state-run platforms for trading digital assets. Meanwhile, Russia is positioning itself as a global leader in the crypto mining sector, with major firms such as Gazprom setting up large-scale mining operations. The country’s finance ministry expects the industry to generate substantial tax revenue by 2025.
Bitcoin’s price surged by 3% in the past 24 hours, reaching a peak of around $64,082. However, the flagship cryptocurrency encountered resistance at this level, coinciding with its 200-day moving average. As a result, Bitcoin retraced approximately 1%, trading at about $63,434 during the mid-London session. The volatility led to over $50 million in liquidations in the leveraged market, with the largest single liquidation on OKX amounting to $5 million.
Technical indicators suggest that Bitcoin might experience further corrections before potentially rallying towards its all-time high. Crypto analyst Ali Martinez noted that the TD Sequential indicator has signalled a sell signal, which may lead to a midterm correction over the weekend. However, he anticipates that if Bitcoin consistently closes above the $64K liquidity level, it could pave the way for a new peak.
In addition, recent data shows that Bitcoin supply on exchanges has dropped significantly, with miners increasing their trading activities. Notably, dormant miners have reactivated their wallets, moving approximately 250 BTC. The growing demand for spot Bitcoin ETFs has contributed to this decline in supply, with net inflows exceeding $700 million over the past two weeks.
As global economic conditions shift, particularly following interest rate changes by the US Federal Reserve, analysts predict a liquidity boost for the crypto market. Bitcoin is expected to follow the bullish trends of precious metals like gold, which recently hit an all-time high, indicating a positive outlook for the crypto market in the upcoming months.
MicroStrategy has announced an increase in its convertible note offering to $875 million, intending to use the funds to pay off existing debt and acquire more Bitcoin. It marks another bold move by the company, which is known for its aggressive Bitcoin acquisition strategy.
The raised funds will help MicroStrategy redeem $500 million of its current senior secured notes due in 2028, with the remaining amount allocated for purchasing additional Bitcoin and general corporate purposes. The company’s total reserves now hold approximately 244,800 BTC, bought at an average price of around $38,585 per Bitcoin.
These convertible notes, set to mature in 2028, will be offered to qualified institutional investors, with holders given the option to convert them into cash, shares of MicroStrategy’s Class A stock, or a combination of both.
Binance founder Changpeng Zhao, better known as CZ, is due to be released from a US prison on 29th September. Zhao, 47, has been serving a four-month sentence for breaching US anti-money laundering and sanctions laws, particularly for allowing transactions with sanctioned countries such as Iran and Cuba. His legal troubles started in November 2023 when Binance and Zhao admitted to multiple charges, resulting in a substantial $4.3 billion fine for the company and a personal penalty of $50 million for Zhao.
Initially facing a potential three-year term, Zhao’s sentence was significantly reduced after US District Judge Richard Jones determined there was insufficient evidence to prove his direct involvement. The judge also considered Zhao’s personal history and character as mitigating factors. As part of the settlement, Zhao agreed to step down as Binance’s CEO.
Although Zhao’s legal woes have rattled Binance, the exchange continues to operate. Following his release, there is speculation about his future role in the crypto world. Earlier in 2024, Zhao hinted at launching a new venture, Giggle Academy, a free educational platform for underprivileged children, signalling his intent to leave a legacy beyond cryptocurrency.
Ethereum has declined, hitting its lowest value against Bitcoin since April 2021. The cryptocurrency has fallen over 55% from its peak in 2021, now trading at 0.039 BTC, down 24% this year and 35% from its yearly high. Ethereum has also dropped to $2,300 in US dollar terms, marking its lowest price since February.
The downturn is largely due to a lack of interest from institutional investors, with Ether-focused ETFs seeing outflows of $581 million. This sharply contrasts with Bitcoin spot funds, which have attracted $18 billion in inflows. Meanwhile, Ethereum has faced competition from layer-2 networks like Base and Polygon, which offer faster transactions at lower costs.
Further contributing to the drop are large-scale sales from key figures like Vitalik Buterin and the Ethereum Foundation. High-profile investors, including Jump Trading, have also reduced or completely liquidated their Ether holdings, further fuelling concerns about Ethereum’s future.
MicroStrategy has announced plans for its third debt offering this year, aiming to raise $700 million by issuing convertible senior notes due in 2028. The company intends to use the funds to pay off $500 million in existing senior secured notes and purchase more Bitcoin, with any remaining proceeds going towards general corporate purposes. The notes will be unsecured and will begin paying interest from March 2025, available only to qualified institutional buyers.
This marks MicroStrategy’s third debt offering in 2024, following similar issuances in March and June. The company, one of the largest public holders of Bitcoin, currently holds 244,800 BTC, valued at approximately $14 billion. However, the volatility of its Bitcoin holdings has affected its financial performance, with the company posting a net loss of $102.6 million in the second quarter of 2024, largely driven by a $180.1 million digital asset impairment.
Despite concerns about its significant exposure to Bitcoin, MicroStrategy’s stock has performed well. Its share price has surged nearly 295% over the past year, with a 96% increase so far in 2024, reaching $134 as of 16 September.
