1. Bitcoin is Rising in Popularity Among African Millennials
The difficulty in finding a graduate job has led many African millennials to look for new way to earn money. Investing in cryptocurrencies such as Bitcoin is a way to grow capital with few upfront costs, and is not time consuming. However, cryptocurrencies are not only being used to earn money. It is also a great method to transfer capital at a cheaper rate. For example, Kenyan technology company BitPesa provides a platform where is possible to transfer money abroad. This remittance company works differently than Western Union, which converts local currency into US Dollars, and then into the recipient’s local currency. BitPesa replaces the US Dollar with Bitcoin, which results in a cheaper transfer.
2. Venezuela Announces Oil-backed Cryptocurrency
Last month, Venezuela’s President Nicolas Maduro announced that the country would launch a cryptocurrency backed mainly by oil, but also gold, diamonds and gas. This would allow the country to bypass US sanctions, which are affecting its relationship with international banks. On Friday, Maduro announced 100 million units of Petro, the cryptocurrency worth one barrel in Venezuela’s oil basket, would soon be issued. Considering the latest price of the oil basket, the total distribution would amount to $ 5.9 billion. As cryptocurrency exchanges are still at an early stage, auctions and direct allocation by the country’s Cryptocurrency Superintendent would be the only sources for the cryptocurrency.
3. Chinese Governments Attempts to Close Mining Business
A leaked document by the Leading Group of Internet Financial Risks Remediation, the country’s leading internet-finance regulator, calls for an “orderly exit” from the mining business. In the document, it is discussed how mining companies consume a high quantity of resources, and feed into cryptocurrency speculation. Furthermore, local authorities are being asked to use electricity price, land use, tax and environmental safeguards to close the mining business in the country. In addition to this, local authorities would also have to report on mining facilities, and update on the exit progress periodically. However, achieving this goal could be harder than expected, considering the amount of revenue regions receive in tax from mining, and the small size of these companies.
4. Indian Lawyer Campaigns for Cryptocurrency Regulation
Bivas Chatterjee, an Indian lawyer, has filed a public interest litigation (PIL), demanding the government regulate cryptocurrencies. Chatterjee is the local government’s nodal officer for cybercrime cases. He believes that due to the association cryptocurrencies have with crime, a legal framework is required. The announcement follows the arrest of two teens in Kolkata for drug trafficking using Bitcoin. He went on to blame a lack of controlling authorities for the big price fluctuations. Chatterjee concluded by demanding either a ban or regulations.
