Riding The Wave News Summary 101
Report outlines reasons why stakeholders are against CBDC, Bank of Russia wants to ban miners from selling crypto to Russians, & more.
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Bank of Russia wants to ban miners from selling crypto to Russians
Gate.io pledges $100M to revive crypto and rebuild investor confidence
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Report outlines reasons why stakeholders are against CBDC
While some countries like Nigeria are aggressively pushing the use of central bank digital currencies (CBDCs), a new report summarized why a number of private stakeholders are against the idea of a CBDC.
The report dubbed “The State of CBDCs in 2022,” published by blockchain insights firm Blockdata, dove into the most significant CBDC developments within the past year. It also pinpointed some of the key reasons why some private companies are against CBDCs.
the report highlighted that digital currency issuance may be better if left to the private sector and were left to innovate with regulatory approvals. Furthermore, the American Banking Association’s (ABA) stance on CBDCs was also cited in the report. According to the ABA, a CBDC issued by the United States Federal Reserve lacks “compelling use cases” and would rewire the banking system.
In addition, the ABA highlighted that there will be a significant fundamental change in the responsibilities of the Fed if it issues a CBDC and urged that the issuance of digital currencies be left with the private sector.
Meanwhile, the Indonesian government recently said that its central bank plans to make its CBDC the only legal tender in the country.
On Dec. 5, Pakistan launched new laws to speed up the release of its CBDC.
It's clear that despite the current state of chaos in the cryptocurrency market, many countries are still moving forward with the development of central bank digital currencies (CBDCs) due to the numerous benefits they offer. In the next 10-20 years, it is likely that the majority of countries will shift towards using digital currencies as the primary means of exchange. This will not only make it easier for governments to track transactions and collect taxes, but it will also enable them to create new forms of money and improve the efficiency of their monetary systems.
Bank of Russia wants to ban miners from selling crypto to Russians
The Russian central bank continues to maintain an extremely negative stance on cryptocurrencies, proposing to ban local miners from selling coins to local people.
The Bank of Russia has supported the idea of legalizing cryptocurrency mining in Russia as part of a draft bill introduced in mid-November 2022.
However, the Russian central bank wants to allow miners to sell their crypto only on foreign exchanges and to non-residents of Russia, the local news agency Interfax reported on Dec. 7.
The new proposal would apparently trigger a lot of questions from miners in Russia, as many foreign crypto exchanges have banned Russians from using their platforms in compliance with sanctions over Russia's war in Ukraine. The Bank of Russia has been a long proponent of allowing residents to trade only via foreign trading platforms as well.
As previously reported, Russian lawmakers introduced a draft bill on cryptocurrency mining into the lower house of parliament on Nov. 17. The original version of the bill doesn’t include a ban on sales of mined cryptocurrency to residents of Russia. At the same time, the bill doesn’t allow miners to sell their coins anywhere other than on foreign exchanges or through the state-backed platform that is being developed within the experimental legal regime for crypto.
With many of Russia’s paths for bringing funds into the country from outside closed, it makes sense that they will put restrictions such as only selling crypto externally to pull more funds into Russia. They also want the CBDC they are developing to be the primary digital currency when it is launched, as they can control and track it.
Gate.io pledges $100M to revive crypto and rebuild investor confidence
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