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Wednesday, June 29, 2022

News of the week: bitcoin returns to $40,000 and increases US government debt

Key facts:
  • Regulators from Colombia, Venezuela and Ecuador take new steps in the regulation of bitcoin.

  • Nayib Bukele mocks the IMF’s warning and assures that bitcoin does not leave El Salvador.

The news about the price of bitcoin (BTC) continues to be the protagonist of the week, after the pioneering cryptocurrency managed to trade above USD 40,000. This is the first time that BTC has overcome this barrier, after the resounding fall it suffered on January 21, which took its value to a minimum of USD 33,000.

The price of bitcoin had remained more or less stable between USD 35,000 to USD 39,000 in the weeks prior to the rise of this Friday, February 4. The average weekly rise is estimated at 10%. At the time of this writing, the cryptocurrency is trading at USD 42,445, as reflected in the market price of Latin America and Spain, according to the CriptoNoticias price calculator.

With CriptoNoticias, those interested can keep up to date on price changes in the bitcoin and ether market in relation to their local currency. To do this, you can visit the BTC and ETH Prices section, which has a calculator to quickly and easily convert to your national currency.

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These are the most important news:

  • On February 4, bitcoin touched $40,000 again, in a rise that was estimated to be around 8% in three hours. This is one of the largest growths in percentage terms that has been recorded since last October 21, when BTC increased its market value by more than 9% in one day. The rise in the price of the cryptocurrency comes days after the investment company JP Morgan reversed its prediction that the value of the cryptocurrency would reach $150,000. The company’s loss of optimism is due, as they point out, to the fact that the volatility of the cryptocurrency has multiplied by 4.
  • According to data from the Treasury Department, the public debt of the United States reached levels never seen before, reaching USD 30 billion, the highest figure in its history. After the information went viral, one of the most striking reactions was that of the president of El Salvador, Nayib Bukele. The president took the opportunity to mock the warnings made by the International Monetary Fund (IMF) urging him to withdraw bitcoin as legal tender, considering it a risk to the stability of the Central American country. Days before, the government had already given answers to the IMF, pointing out that Bitcoin is not leaving El Salvador.
  • The IMF’s position against the pioneering cryptocurrency was ratified by the opinion of the organization’s financial advisor, Tobías Adrián, who believes bitcoin volatility is causing ‘destabilizing’ capital flows in developing economies. “Cryptocurrencies are being used to get money out of countries that are considered unstable,” Adrián said in an interview with the Financial Times.
  • The US Federal Reserve took a stand on stablecoins after an investigation found that further adoption of stablecoins would hit banks’ balance sheets. Therefore, he proposed a two-tier banking system that supports the issuance of stablecoins. This occurred at the same time that the Boston Fed and the Massachusetts Institute of Technology (MIT), published a prototype that could serve as the basis for the creation of a digital dollar for the United States. Among the findings presented – after two years of research – they highlighted the creation of the OpenCBDC software, “a central processing engine for a general-purpose CBDC.”
  • The old Facebook (now Meta) managed to sell the intellectual property and other technological assets related to the Diem payment network, after being for almost three years at the head of the project. The infrastructure, development tools, implementation and operations of the project, initially called Libra, were sold to the company Silvergate Capital for USD 200 million.
  • This week, several countries in Latin America took new steps in terms of regulation. In Colombia, as of April 1, transactions with BTC greater than USD 150 must be notified to the Financial Information and Analysis Unit (UIAF). In Venezuela, a tax of up to 20% was approved for Large Financial Transactions (IGTF) with currencies other than the local bolivar; a measure that includes operations with bitcoin and other cryptocurrencies. Meanwhile in Ecuador, the Central Bank promised the creation of a regulation “in the first quarter” of 2022.

If you want to know the meaning of several words of the terminology of the crypto world, you can consult them in the extensive Glossary of CriptoNoticias.

SFYL (Sorry For Your Loss): in Spanish, “I’m sorry for your loss.” It is humorously told to someone who has just made a bad investment.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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