2
Total Cryptocurrencies
0
Markets
0
Total Market Cap
0
Volume 24H
0.0 %
Bitcoin Dominance

To.Kn News Feed
Cyrpto Articles for our Caribbean Customers

Travala Now Accepts Shiba Inu Crypto — SHIB Can Be Used to Book 3 Million Travel Products Worldwide
December 7, 2021 10:30 pm
Travala Now Accepts Shiba Inu Crypto — SHIB Can Be Used to Book 3 Million Travel Products Worldwide

Crypto-friendly travel website Travala has added support for the shiba inu cryptocurrency. SHIB can now be used to book more than 3 million travel products worldwide on the site, including flights, hotels, and travel packages.

Travala Adds Support for Shiba Inu Crypto

Travel website Travala announced Tuesday that shiba inu cryptocurrency has been added to its website as a payment method.

The official account for the company tweeted congratulating shiba inu supporters for winning the token battle it set up a few days ago, adding that SHIB is now listed as a payment method on Travala.com and can be used to book over 3 million travel products worldwide.

Travala set up a “token battle” between FLOKI and SHIB on Dec. 2. The company explained that the cryptocurrency with the most votes after 72 hours “will win a listing on Travala.com.” In addition, “All users who vote for either token will receive a share of $15,000 in AVA, which will be dispersed in accordance with the votes cast.”

The voting ended with SHIB as the clear winner.

“We pride ourselves on being the leading cryptocurrency-friendly accommodation booking platform,” Travala’s website states. Currently, users can pay with 77 cryptocurrencies, including the meme cryptocurrency dogecoin (DOG) and the newly listed SHIB.

The crypto-friendly travel site reported earlier this month that its total revenue for November was $7.2 million, a 683% increase year-on-year. Furthermore, 82% of all bookings in November were paid with cryptocurrencies.

The adoption of shiba inu crypto has been rising steadily. In November, cryptocurrency exchanges Kraken and Gemini added support for SHIB. Newegg is set to accept shiba inu for payments this month and AMC Theatres promises to accept SHIB in the first quarter of next year. Meanwhile, shiba inu supporters have been petitioning for the popular trading platform Robinhood to accept SHIB. At the time of writing, 544,304 signatures have been collected.

What do you think about Travala adding support for shiba inu (SHIB) cryptocurrency for payments? Let us know in the comments section below.

Billionaire Barry Sternlicht Discusses Bitcoin Price Rising to $1 Million — Calls BTC a ‘Smart’ Hedge
December 7, 2021 8:30 pm
Billionaire Barry Sternlicht Has Over $1 Billion in Crypto — Sees Bitcoin as Smart Hedge

The chairman of Starwood Capital Group, billionaire Barry Sternlicht, has shared his view on how bitcoin could grow to be worth a million dollars a coin. He calls the cryptocurrency a “smart” hedge in a world where the government just keeps on printing money.

Billionaire Barry Sternlicht Believes Bitcoin Could Rise to $1 Million per Coin

Billionaire Barry Sternlicht, the chairman of Starwood Capital Group, talked about the future outlook for cryptocurrencies, particularly bitcoin, Friday while speaking at a Bloomberg event in Miami.

Sternlicht runs Starwood Capital Group, a private equity firm that specializes in real estate investments. The firm has about $100 billion under management in real estate, debt, and energy assets. According to Forbes’ list of billionaires, his current net worth is $4.2 billion.

Noting that he has called his bitcoin position a “great hedge,” the billionaire was asked, “Is that how we all should be thinking?” Sternlicht firmly replied, “Yes.”

He explained that we live “In a world where the government just prints money, and prints money, and prints money, and prints money, and doesn’t seem to have any consequences.” Noting that “Sometimes, that will end,” the billionaire stressed:

The only thing that they can’t make more of is bitcoin.

He added that bitcoin has “never been hacked,” but noted that “It has no real value other than there’s 21 million coins” that are “infinitely divisible.”

In comparison, he pointed out that gold also “really doesn’t have a lot of value,” adding that “You can have your gold jewelry but it could be silver or titanium or platinum.”

Sternlicht opined: “You could see the world saying to the U.S., especially with our political isolationism, they would say China is going to try to knock us off the dollar standard, and they are going to have a lot of countries aligned with them.”

The Starwood Capital executive emphasized: “They are going to try really hard. It’s very obvious. They are going to try really hard to break the dollar standard. If that happens and the dollar devalues, you need one thing that could hold its value.”

While admitting that bitcoin “will go down with the stock market,” he stressed that in his opinion, “it will reverse,” elaborating:

It would go to $1 million a coin. It could do that because everyone, it’s not U.S. investors, the whole world will look at one thing that they can’t make more of and that would be bitcoin.

“There’s no function other than a store of value so having a little investment in bitcoin, I think, might be a smart little hedge in your life because your paper will be worthless, unfortunately,” he warned.

The billionaire then disclosed that he has about 2% to 3% of his net worth in cryptocurrencies. Regarding crypto investment, he said: “If it goes to zero, it won’t hurt me either, it won’t hurt you.” However, he emphasized:

But if it goes to $1 million a coin, you are going to look at the TV and get very upset.

A growing number of billionaires are using bitcoin to hedge against inflation.

Famed hedge fund manager Paul Tudor Jones said in October that he preferred bitcoin over gold. Orlando Bravo, the billionaire who co-founded private equity firm Thoma Bravo, said in September that he is very bullish about bitcoin, expecting it to increase “significantly.”

Last week, Mexican billionaire Ricardo Salinas Pliego said the U.S. “is looking more and more like any other irresponsible third world country.” Salinas tweeted a weekly chart of the total value of the Federal Reserve’s assets (less eliminations from consolidation) and commented: “Wow…look at the scale of fake money creation. Buy bitcoin right now.”

Do you agree with Barry Sternlicht about bitcoin? Let us know in the comments section below.

Amex, Visa, Citi, Paypal Invest in Crypto Transaction Monitoring and Forensics Platform
December 7, 2021 6:30 pm
Amex, Visa, Citi, Paypal Invest in Crypto Transaction Monitoring and Forensics Platform

American Express’ Amex Ventures, Visa, Citi Ventures, DRW Venture Capital, Jump Capital, Marshall Wace, Block (formerly Square Inc.), and Paypal Ventures are among investors in the latest funding round of crypto transaction monitoring and forensics platform TRM.

Amex, Visa, Citi, Paypal Invest in TRM Platform

Crypto transaction monitoring and forensics platform TRM announced Tuesday investments from major financial institutions in its Series B funding round.

The company has raised $60 billion from leading financial institutions, including American Express’ Amex Ventures, Visa, Citi Ventures, DRW Venture Capital, Jump Capital, Marshall Wace, Block (formerly Square Inc.), and Paypal Ventures.

The funding round was led by Tiger Global. It also included investments from 50 of the world’s leading operators including Coinbase President and COO Emilie Choi.

Esteban Castaño, TRM’s cofounder and CEO, commented:

Crypto is moving faster than any sector in our lifetimes. Organizations need a blockchain intelligence partner that can stay ahead of the evolving risk landscape — from ransomware attacks to defi [decentralized finance] exploits.

TRM detailed: “In support of our mission to build a safer financial system for billions of people, we developed the first blockchain intelligence platform that combines cross-chain data with threat intelligence, advanced analytics, and intuitive visualizations to help organizations detect crypto fraud and financial crime.”

Crypto businesses — such as Circle, FTX US, and Moonpay — “use TRM Transaction Monitoring to detect suspicious activity and meet anti-money laundering (AML) regulatory requirements,” the company said, adding:

Government agencies use TRM Forensics to investigate sophisticated crypto-related crime including scams, hacks, and terrorist financing.

The TRM team includes threat finance experts from the Federal Bureau of Investigation (FBI), the U.S. Secret Service, and Europol. It also includes data scientists from companies like Apple, Amazon, and Google.

What do you think about major companies investing in TRM? Let us know in the comments section below.

Hathor Network: Making Blockchain Easy for Everyone
December 7, 2021 6:00 pm

PRESS RELEASE. The blockchain revolution has captured the attention of millions in the past decade. The advent of cryptocurrencies like bitcoin has redefined the concept of money, while smart contract networks have expanded blockchain applications towards different sectors.

While crypto adoption continues to grow, the onus is on the underlying technology to adapt to the new wave of users. Ethereum remains the leading smart contract network, but its problems are well documented. Scalability issues and high gas fees on Ethereum makes it difficult for developers and new projects to thrive quickly.

The code-eccentric nature of Ethereum also means that crypto enthusiasts with little technical knowledge find it challenging to build decentralized applications (dApps). However, several new blockchain protocols have sprung up in recent years to offer an alternative, and Hathor has proven to be a popular option among developers and end-users.

An innovative blockchain project

Hathor is a proof-of-work based protocol that deploys DAG and blockchain data structures within an interoperable environment. The project was initiated in 2018 by a team of highly skilled developers, and its mainnet was launched in January 2020.

Hathor is one of the few blockchain protocols that is based on heavy scientific and academic research. Its research paper was written by the CTO Marcelo Brogliato and published as part of his PhD thesis.

Hathor has described itself as the ‘’WordPress of blockchain’’ and provides a simplified blockchain network where everyone can build solutions. Its one-stop solution means that developers can build tokens and decentralized applications without the requirements of learning specific programming languages or frameworks like Solidity, Substrate and Rust.

Developers can also create smart contracts within their network via open APIs in multiple programming languages and familiar coding tools. Hathor also offers a developer-friendly headless wallet that is useful for complex applications.

Hathor provides fewer entry barriers for end-users, and anyone can mint custom tokens within a few minutes using its mobile or desktop wallet. All that is required is to lock 1 HTR token for every 100 units of a custom token created.

Non-fungible tokens have been a growing trend in the crypto world due to their application in digital art, sports, and entertainment. Users can mint NFTs within the Hathor desktop wallet without any technical knowledge. NFTs minting only costs 0.02 HTRs to be created, and users can transfer them within the Hathor blockchain without extra transaction fees.

Merged Mining concept

Hathor is one of the few blockchain protocols that use the concept of Merged mining. Merged mining enables the mining of more than one cryptocurrency without requiring additional proof-of-work effort.

Proof-of-work is an energy-consuming algorithm but provides apparent benefits in security and decentralization. Merged mining enables miners to increase their investment at reduced costs since they don’t have to buy extra hardware to mine additional cryptocurrencies.

Miners can mine Hathor tokens HTR on F2Pool and Poolin, two of the most popular mining pools on the bitcoin network. Also, the current HTR mining rewards will be halved from Jan 5, 2022, from 32 to 16 tokens per block.

Key collaborations and use-cases

Hathor has experienced massive adoption since its mainnet launch in 2020 and has been deployed by several projects. Some include 9Block, an NFT platform built by Brazilian influencer Felipe Neto, AfferoFlow, Kick-Off Music and Databoi.

Dropull, an NFTs platform for in-game items in Cidade Alta, one of the largest gaming servers in Latin America with 120,000 active users, is also hosted on Hathor. In addition, the blockchain protocol has also launched Hathor Green, an initiative that incentivizes miners within its protocol to utilize green energy.

In addition, the blockchain protocol has agreed a strategic partnership with Simplex to launch a debit card within its ecosystem. Hathor is also integrated with popular hardware wallet Ledger, and users can store their tokens using the device.

Exciting future ahead

The Hathor team has continued to work on new upgrades and partnerships that will foster the growth of its ecosystem and HRT token. An NFT project is currently building a dedicated NFT marketplace on Hathor, while HathorSwap, a DEX, is expected to be launched in the coming weeks.

Hathor has massive potential, and its straightforward approach towards blockchain applications positions it in the right place to become a leading crypto stakeholder in the future.


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Bitwise CIO Says $100K Bitcoin a Difficult Prediction to Make, Calls Ethereum the ‘Asset of the Year’
December 7, 2021 4:30 pm
Bitwise CIO Says $100K Bitcoin a Difficult Prediction to Make, Calls Ethereum the 'Asset of the Year'

While there’s been an awful lot of calls for bitcoin to reach six-digits in value in 2021, as the end of the year draws closer, it doesn’t seem like $100K per bitcoin will happen. Bitwise Asset Management’s chief investment officer Matt Hougan told the press on Monday that “$100,000 by the end of the year is a difficult prediction to make.”

$100K Bitcoin Prices May Be Unattainable in 2021 Bitwise Exec Says Next Year ‘Investors Are Going to Be Looking at Ethereum’

For a good portion of the year, many bitcoin advocates, experts, luminaries, and analysts predicted that bitcoin (BTC) would surely hit the $100K per unit range in 2021. One of the most popular forecasts belongs to Plan B, the creator of the stock-to-flow (S2F) bitcoin price model. Plan B said based on the pseudonymous analyst’s “worst case scenario for 2021 (price/on-chain based)” would be “Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K.”

However, November’s price call missed and the $135K prediction looks like it will miss as well. Bitcoin would have to double in value over the next 24 days gathering a touch over 96% during that time. Plan B is not the only one that has predicted BTC could hit six-digits in USD value by the year’s end. The financial institution Standard Chartered predicted at the beginning of September that bitcoin’s value could reach $100K by the end of the year.

Yahoo Finance contributor, Javier David, said on October 21, that “suddenly, a bitcoin move to $100K doesn’t seem so farfetched.” In fact there’s a great number of analysts that have said that at some point in the future, bitcoin prices will touch the six-digit zone or $100,000 or more per unit. Speaking with Bloomberg’s Emily Chang, Bitwise Asset Management’s CIO Matt Hougan explains that bitcoin hitting $100K will be difficult in 2021. Hougan further explained that ethereum (ETH) was the “asset of the year” in 2021.

“I think as we look into 2022, we still have these fundamental drivers, the institutions we speak to every day at Bitwise,” Hougan explained. “$100,000 by the end of the year is a difficult prediction to make — I think $100,000 could be in target in 2022 but this year, I’m not so sure,” Hougan remarked.

Hougan Predicts an ‘Explosion of Activity Built on Ethereum’

As far as the second-largest crypto asset by market capitalization, ethereum (ETH), Hougan thinks 2021 was the digital currency’s year. While noting to Bloomberg’s Chang that ethereum was the “asset of the year,” Hougan also stressed that there will be an “explosion of activity built on Ethereum” next year. But investors will be looking at other smart contract blockchain networks as well, the Bitwise CIO said. Hougan added:

Investors are going to be looking at Ethereum, Solana, or Polygon. Investors are starting to realize there’s more to crypto than just Bitcoin. If there’s one bigger story for next year, it’s going to be everything else: crypto as defi, NFTs, Web3, or metaverse.

What do you think about the Bitwise CIO’s cryptocurrency predictions? Let us know what you think about this subject in the comments section below.

AOC Says She Doesn’t Hold Bitcoin so the Lawmaker ‘Can Do Her Job Ethically’
December 7, 2021 2:30 pm
AOC Says She Doesn't Hold Bitcoin so the Lawmaker 'Can Do Her Job Ethically'

Alexandria Ocasio-Cortez, otherwise known as AOC, is a New York representative well known for her political stances and statements. The Democrat believes that it is “absolutely wild” that U.S. representatives can buy and swap popular stocks. AOC also thinks it’s not ethical for members of Congress to own cryptocurrencies.

AOC Doesn’t Hold Crypto Because She Wants to ‘Remain Impartial’

Lawmaker Alexandria Ocasio-Cortez (AOC) discussed owning bitcoin (BTC) in a recent Instagram story she told on Monday. AOC explained that she doesn’t believe members of Congress should own stocks and the same morality applies to digital currencies in her opinion. During her Instagram story, AOC said she doesn’t hold BTC because she wants to remain impartial and an unbiased lawmaker.

“Because we have access to sensitive information and upcoming policy, I do not believe members of Congress should hold [or] trade individual stocks and I choose not to hold any so I can remain impartial about policy marking,” AOC insisted on Instagram. “I also extend that to digital assets/currencies (especially because I sit on the Financial Services Committee). So the answer is no because I want to do my job as ethically and impartially as I can,” AOC further stressed in her Instagram story.

In 2017 AOC Said She Wasn’t Sure ‘About FEC Laws Regarding Crypto’

Close to four years ago in December 2017, AOC was asked if she accepted bitcoin after she tweeted about a fundraising campaign that year. “Not [until] Actblue does,” AOC said at the time. “Also I’m not sure about FEC laws regarding crypto. Good question,” she added. “Sadly reporting this info is law and must be collected, even with cash donations,” AOC continued on Twitter. “It’s unfortunate that our campaign finance laws demand more stringent reporting of regular small donors than they do from Superpacs.”

In recent times, AOC has started ferocious debates over her “Tax the Rich” Met Gala dress. She and her colleagues Rashida Tlaib and Ayanna Pressley attempted to get president Joe Biden to choose someone other than Jerome Powell to lead the Federal Reserve. Biden ultimately chose Powell, but AOC wanted the U.S. president to choose a Fed chair that would address social change and the so-called climate crisis.

What do you think about AOC’s declaration that she doesn’t own bitcoin so she can remain impartial as a U.S. lawmaker? Let us know what you think about this subject in the comments section below.

Delaying the Ice Age — Ethereum Network Participants Prep for Upcoming Arrow Glacier Upgrade
December 7, 2021 12:30 pm
Delaying the Ice Age — Ethereum Network Participants Prep for Upcoming Arrow Glacier Upgrade

The Ethereum network will be undergoing a scheduled upgrade soon called “Arrow Glacier,” a change that aims to mimic the “Muir Glacier” upgrade. Essentially, Ethereum’s Arrow Glacier changes the parameters of the network’s Difficulty Bomb delay to June 2022. This will give the Ethereum network another six months until it leads to the “Ice Age” proof-of-stake (PoS) transition.

Arrow Glacier Aims to Postpone Ethereum’s Ice Age

At Ethereum block height 13,773,000 the network will implement the Arrow Glacier upgrade which aims to postpone Ethereum’s Difficulty Bomb. The bomb mechanism has been around since 2015 and makes the network’s mining difficulty increase over time. The end result will lead to the Ice Age, a moment in time when the blockchain stops proof-of-work (PoW) block production and the chain is 100% reliant on proof-of-stake (PoS) consensus.

The Difficulty Bomb was supposed to happen 4,000,000 blocks or 611 days after the Muir Glacier network upgrade. However, Arrow Glacier will push the bomb back further to June 2022. This will give ethereum PoW miners another six months to continue mining the Ethereum blockchain until the June 2022 change. Once the Difficulty Bomb does happen the mining difficulty will make it so PoW miners get phased out because it will be too difficult.

Arrow Glacier is expected to happen between now and Wednesday, December 8, 2021. “The Arrow Glacier network upgrade, similarly to Muir Glacier, changes the parameters of the Ice Age/Difficulty Bomb, pushing it back several months,” Ethereum developers expain. “This has also been done in the Byzantium, Constantinople and London network upgrades. No other changes are introduced as part of Arrow Glacier.” The announcement adds:

The Difficulty Bomb only affects proof-of-work networks, and hence only exists on the Ethereum mainnet and the Ropsten test network. With the recent progress towards Ethereum’s transition to proof-of-stake, it was decided to only delay the bomb on mainnet for now and to try and run the proof-of-stake transition on Ropsten before the bomb goes off on that network.

Ethereum Hashrate Taps All-Time High, Ether Is the Second-Most Profitable Coin to Mine in 2021

While Ethereum network participants have been waiting a long time for the Ice Age PoS transition, ethereum miners have been enjoying the PoW incentives. During the early morning hours of December 7, Ethereum’s hashrate reached 1 petahash per second (PH/s). The recorded metric is the highest the hashrate has ever been and currently Ethereum’s processing power is coasting along at 900 terahash per second (TH/s).

Additionally, besides kadena (KDA) mining, ethereum (ETH) mining is currently the second-most profitable cryptocurrency to mine today. At $0.12 per kilowatt-hour (kWh) and today’s ether exchange rates, a 1,500 megahash per second (MH/s) machine can get around $91 per day. Mining ethereum with the most profitable ether mining rig is 68.85% more profitable than mining bitcoin (BTC) with today’s best performing SHA256 bitcoin miner which gets a touch over $28 per day in profits.

What do you think about the upcoming Arrow Glacier upgrade? Let us know what you think about this subject in the comments section below.

Report: Mirror Trading International Said to Be Owed Over $129 Million by Previously Unaccounted for Debtors
December 7, 2021 10:30 am

Mirror Trading International, the now-defunct fraudulent bitcoin investment platform, is said to be owed more than $129 million by debtors that had not been declared previously.

Unaccounted for Debtors

Liquidators of the collapsed South African bitcoin Ponzi scheme, Mirror Trading International (MTI), recently released a statement that suggested the scheme is owed as much as $129.6 million (2.07 billion rands) by previously unaccounted for debtors.

According to a report by Moneyweb, preliminary investigations by liquidators also show that MTI had assets valued at over $190 million. However, the report said liquidators conceded they still needed to carry out more investigations.

These reports of fresh claims against MTI follow the confirmation by liquidators that they had successfully applied for the liquidation of JNX Online, a firm that is allegedly controlled by Johann Steynberg, the scheme’s former CEO.

As explained in the report, Steynberg and his wife, Nerina, had allegedly used JNX Online to buy and sell bitcoins. The same company was also used to make payments to MTI’s creditors and to Nerina.

Legal Action Option

The liquidators, according to the report, believe that legal action — which enables them to investigate fraudulent claims against MTI — might be required. Besides the mooted legal action, the report said “crypto specialists” have since been appointed to assist in quantifying and identifying claims that were obtained from MTI’s back-office platform.

Before running into legal and regulatory troubles, MTI projected itself as a legitimate bitcoin investment platform with some 300,000+ investors. Yet as the findings of an investigation by liquidators show, the number of investors is in fact well below that.

Meanwhile, the Moneyweb report said liquidators will continue to investigate the circumstances leading to the collapse of MTI “by way of Section 417 and 418 enquiries in terms of the Companies Act.”

What are your thoughts about this story? Tell us what you think in the comments section below.

Sony Pictures and AMC Theatres Choose WAX Blockchain for Spider-Man: No Way Home NFT Promotion
December 7, 2021 10:00 am

Eco-friendliness and mass market accessibility cited as major factors in choosing WAX.

WAX Blockchain has been chosen by Sony Pictures and AMC Theatres (NYSE:AMC) for Sony Pictures’ Spider-Man: No Way Home NFT Promotion, the first ever NFT promotion between a studio and a major theatrical exhibitor. The decision to utilize WAX blockchain was based on several key benefits of WAX Blockchain including eco-friendliness and mass market accessibility.

“In addition to being eco-friendly, it was essential that the process for receiving the NFT was also consumer friendly,” said Adam Aron, Chairman of the Board and CEO, AMC Theatres. “It’s easy to use and already widely adopted WAX Cloud Wallet combined with no gas fees for minting, sending and receiving NFTs gave us confidence that everyone, including first time blockchain users, would be able to participate in the promotion.”

“We’ve always believed that blockchain technology and NFTs should be accessible to the masses in an environmentally responsible and user-friendly way,” said William Quigley, Co-Founder of WAX, “and we are thrilled Sony Pictures and AMC Theatres chose us for this promotion for what will be the biggest film release of the year.”

Members of AMC Stubs Premiere & A-List, and AMC Investor Connect, will receive an exclusive Spider-Man™ NFT, via the WAX blockchain, with an opening day advance ticket purchase or reservation, while supplies last. 86,000 NFTs were made available for this unprecedented Sony Pictures and AMC celebration of the release of Spider-Man: No Way Home. The NFTs will be available to be redeemed at a dedicated site operated by WAX. Tickets are currently on-sale for Spider-Man: No Way Home, which opens exclusively in theaters on December 16. For more information on how to become eligible for an NFT please visit here.

WAX is the most utilized blockchain in the world processing 15 million transactions daily with over 450,000 daily users. It consumes only .000223 terawatts of energy and produces only 110 tons of carbon a year, about the same as 5 individual Americans, and has been certified carbon neutral. It is second only to Ethereum in monthly NFT sales volume among layer-1 blockchains. Wax Cloud Wallet is one of the most widely used blockchain wallets in the world with over 8,000,000 user accounts.


This is a sponsored post. Learn how to reach our audience here. Read disclaimer below.

Bank of Russia Rejects Provision of Crypto-Related Financial Services
December 7, 2021 8:30 am
Bank of Russia Rejects Provision of Crypto-Related Financial Services

Russia’s central bank has voiced opposition to the provision of financial services related to cryptocurrencies. The monetary authority believes such offerings would go against the interests of Russian investors as they are highly risky.

Central Bank of Russia Unwilling to Allow Financial Services for Crypto Assets

The Central Bank of Russia (CBR), known for its hardline stance on the legalization of cryptocurrencies, has dismissed a call by members of the financial sector to authorize the provision of crypto-related services. The regulator announced its position during a meeting with representatives of the industry, held to discuss the prospects for the development of the Russian stock market.

According to a recently published announcement, the financial businesses raised the question of allowing crypto investment in the Russian Federation. Responding to their suggestion, the monetary policy regulator stated:

According to Bank of Russia, the provision by financial institutions of services related to operations with crypto assets and derivatives on such assets does not meet the interests of investors in the financial market and carries great risks.

The press release further reveals that the central bank has also turned its back on the industry’s proposal to expand the practice of issuing Russian financial instruments in foreign fiat currency.

Bank of Russia has consistently maintained a conservative view regarding the status of the Russian ruble as the only legal tender in the country which it wants to preserve. The CBR remains opposed to permitting the free circulation of bitcoin and the like as well as their use in payments.

The monetary authority has often referred to cryptocurrencies as “money surrogates” which are banned under current Russian law. It’s also working to develop and issue its own digital ruble with trials expected to begin as early as January 2022, after the completion of the platform’s prototype by the end of this year.

While cryptocurrencies remain only partially regulated in Russia through the law “On Digital Financial Assets,” which went into force in early 2021, their popularity as an investment option has grown significantly. Survey results released by the CBR have shown that cryptos and other alternative assets form over half of the portfolio of non-qualified Russian investors.

In July, Bank of Russia advised domestic stock exchanges to avoid the trading of financial instruments tied to crypto assets and their prices. Their listing “entails increased risks of losses for people who do not have sufficient experience and knowledge,” the authority warned.

The bank also insisted that asset managers should not include cryptocurrencies in mutual funds and called on brokers and trustees to refrain from offering “pseudo-derivatives with such underlying assets to unqualified investors.” Russian lawmakers are considering restrictions on the funds private investors may put into crypto.

Do you think Bank of Russia can change its stance on crypto investment in the future? Share your expectations in the comments section below.