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The Cuban government is exploring the potential of cryptocurrencies – Crypto weekly update

Published: 02. 09. 2021 · Author: Daniel Mitrovsky

This week, the total market capitalization exceeded 1.88 trillion EUR. Increase at the 7-day interval is 9.94 %. Bitcoin increased by 4.82 % during the week to a current value of over than 42 100 EUR. Bitcoin dominance is 42.1 %.

Source: Coinmarketcap

Cuba's central bank looking for cryptocurrencies

The Cuban government reportedly plans to recognise and regulate cryptocurrencies as a payment method for commercial transactions in the country, citing "socio-economic interest".

Resolution 215, which was published Thursday in the state-run Official Gazette, says the central bank will set new rules for how to deal with digital currencies. Commercial providers of related services will now need a license from the central bank to continue operations.

By adopting cryptocurrencies as a payment method, Cubans could help the country to circumvent the U.S. sanctions regime, which was dialed up under former President Donald Trump and has been extended under President Joe Biden.

The popularity of cryptocurrencies in the country is increasing. This is not only due to the complicated use of the dollar due to the sanctions regime, but also to the very weak value of Cuban pesos. In addition, the growing crypto community in Cuba has also seen an internet boom in recent years. More and more people in Cuba own a smartphone with a 3G connection.

Cryptocurrencies can mean a potential liberation from adversity for the Cuban regime. However, the use of cryptocurrencies will be strictly regulated and controlled by the central bank. All infrastructure companies, exchanges or brokers who would like to continue their activities, will need to have a licence from the central bank. Source

Bitcoin ATM operators form anti-money laundering alliance

With Bitcoin ATMs increasingly under scrutiny as a tool of money launders, drug traffickers and other criminal organizations, a group of automated teller machine operators have formed an anti-money laundering and industry advocacy alliance.

The newly formed alliance will seek to legitimise crypto industry transactions as much as possible. Bitcoin operators have also agreed to build new regulatory compliance standards, establishing best practices, and building relationships with law enforcement, regulators and banks.

There are currently roughly 42,000 bitcoinmats in the United States alone. As the industry booms, the use of those machines by organized criminal gangs and money laundering organizations (MLO) is a growing concern.

Bitcoin ATM’s are subject to the same anti-money laundering (AML) and know-your-customer (KYC) regulations requiring banks and other money transferring companies. Source

Belarus president urged citizens to mine cryptocurrencies

In a recent meeting with the employees of JSC Belaruskali, the President of Belarus, Alexander Lukashenko, advised citizens to remain in their home country and mine cryptocurrencies.

According to him, workers could seek an alternative source of income from mining cryptocurrencies, rather than travel to Poland and Germany to fill low-paying working positions.

The Belarusian leader also emphasized that there was enough electricity in the region to power crypto mining activities. Lukashenko mentioned that the area had a lot of empty industrial sites that could be used to generate revenue.

Belarus has legalised cryptocurrency-related activities, including mining , as far as 2018. Moreover, Belarus is currently one of the top crypto tax havens, because until 2023 there is a 0% crypto related tax for blockchain companies. Source

Cryptocurrency-related job offers are on the rise

The popularity of cryptocurrencies and blockchain is reflected not only in the massive bull market, but also in the growing adoption of blockchain technology and related job offers.

Software development has emerged as the most sought-after job posting by recruiters in the cryptocurrency and blockchain technology sector.

Data provided to Finbold by cryptocurrency trading simulator Crypto Parrot indicates that in 2021 as of July 16, software development had the highest share of 29.7 % of all crypto and blockchain job postings

Management jobs recorded the second-highest share in 2021 at 10%.

Crypto and blockchain technology jobs under human resource, marketing, and finance recorded the highest growth rate between July 16, 2020, and July 16, 2021, at 200%, 105.88%, and 100%, respectively. Source

Square wants to create a decentralized bitcoin exchange

Jack Dorsey, CEO and founder of Square, has announced plans to build a decentralized exchange on Bitcoin.

Jack Dorsey announced last month that he was setting up a new bitcoin division called TBD to build an open decentralized exchange platform for Bitcoin.

Decentralized exchanges such as UniSwap and PancakeSwap are seeing increasing user favors on programmable blockchains such as Ethereum and Binance Smart Chain. Dorsey's project plans to create a permissionless cryptocurrency exchange directly on Bitcoin network, which would bring wide-ranging options for swaping FIAT money for Bitcoin.

The project will simplify the process of funding a non-custodial wallet without using custodial exchanges like Square’s Cash App and Coinbase. He added that this will be done by creating on- and off-ramps into Bitcoin. Decentralized exchanges are more and more attractive, mainly due to the fact that they do not require any information about their users (non-KYC). Source

Commentary : Speech by FED chairman Powell

The U.S. Central Bank is likely to begin tightening its monetary policy in this year. However, the base interest rate is likely to remain unchanged for a longer period of time. That's what FED chief Jerome Powell said last Friday.

The central bank is highly likely to start reducing the tempo of securities purchases in the fourth quarter. Currently, the central bank buys $120 billion worth of securities a month. The U.S. consumer price index climbed as much as 5.4 % year-on-year, the most increase in 13 years.

Jerome Powell has emphasized that reducing the volume of security purchases is no sign of changing the base interest rate that the central bank has kept close to zero since March 2020.

The FED has no plans to raise interest rates until it has completely cut back on its purchases of securities. In addition, the FED will actively monitor the situation around the delta mutation and its potential economic impacts. Source

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