The G20 mentioned crypto regulation in its recent declaration on sustainable development adopted in Argentina. The declaration was published on the official website of the Council of the European Union and the European Council Dec. 1.
At a meeting in Buenos Aires on Nov. 30 and Dec. 1, G20 officials reiterated their concerns about the crypto industry along with its overall agenda regarding the future of work and infrastructure for development.
The declaration entitled “Building consensus for fair and sustainable development” regards cryptocurrencies as an important part of an “open and resilient financial system” that “is crucial to support sustainable growth.”
While recognizing the importance of the cryptocurrency industry for the global economy, the G20 noted that it will introduce anti-money laundering (AML) and anti-terrorist financing measures per Financial Action Task Force (FATF) standards.
G20 participants also expressed a positive stance on non-bank financial institutions, pointing out the potential advantages of technology in the financial sector provided that the tech disruptors are managing associated risks:
“We look forward to continued progress on achieving resilient non-bank financial intermediation. We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated.”
G20 officials have previously expressed a “soft” stance on crypto, stating that they will continue a “hands-off approach” towards crypto regulation. In July, a summary of interim decisions made by the dedicated Finance Ministers & Central Bank Governors said that “technological innovations, including those underlying cryptoassets, can deliver significant benefits to the financial system and the broader economy.” However, the document noted:
“Crypto-assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing.”
As Cointelegraph reported yesterday, G20 leaders have urged the global community to develop taxes on cryptocurrencies, calling for “a taxation system for cross-border electronic payment services.”
Paxful, a peer-to-peer crypto exchange, has completed its second school in Rwanda using entirely Bitcoin donations through the #BuiltWithBitcoin campaign. The new school is a primary school for students up to age 14, with Paxful intending to provide students with smartphones and tablets, and the curriculum to be a return to the basic liberal arts notion of trivium et quadrivium or classical education.
Both teachers and students will have blockchain and Bitcoin information at the heart of their education, potentially preparing students for a thriving future in Rwanda which is being fomented by the government’s willingness to embrace new technologies. Students will learn how to transact in Bitcoin and even exchange it for local currency, an important real-world lesson they can take home to their parents. Paxful is, of course, a realistic method of safely doing so, one of many.
The school has a total of 6 classrooms with a teacher for each, running water and electricity, a cafeteria, and all the other modern things that Western students take for granted. In a press release, Paxful CEO Ray Youseff said:
“We encourage the cryptocurrency sector to contribute more to humanitarian projects. The #BuiltWithBitcoin initiative is an example of bitcoin being used as more than a speculative tool but a testament to the usefulness of cryptocurrency. To date, we have built two schools – a nursery, and a primary school in Rwanda, Africa- and provided scholarships to Afghan refugees, and plan to continue these philanthropic ventures.”
The company announced in July a partnership with ZamZam Water to ensure that the school had the vital resource which is far from a guarantee at all in that part of the world.
In total, Paxful aims to build 100 schools across the country, and there’s no saying the project has to stop there. They raise donations through their own platform and through social media awareness, and convert the donations into schools. The power of the blockchain is leveraged, as Ray Youseff says in the above video: “Bitcoin people don’t wait around. Cryptocurrency is fast.”
And they are doing a lot with a little. The Bitcoin address (donations can be made in other major cryptos as well) used for donations, 3Q5CESP85hhXTLSy2HDbSyNchb5Bi8D7ku, had received just 15 BTC at time of writing. While it’s not nothing, it demonstrates the amount of good that a relatively small amount of money can do in a place like Rwanda, and potentially the powerful impact that blockchain will play as Rwandan society increasingly adapts to it.
As for Paxful, they remain one of the top peer-to-peer crypto marketplaces, working hard to unseat veteran LocalBitcoins.
Featured Image from Shutterstock
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Bitcoin (BTC) may break its three-year December winning streak unless prices convincingly cross key resistance at $4,410 in the next few days.
The leading cryptocurrency by market value gained 14 percent, 30 percent and 40 percent in the last month of 2015, 2016 and 2017, respectively, according to CoinDesk’s Bitcoin Price Index. (BPI).
The odds, however, are stacked against BTC extending that winning streak this year.
To start with, BTC’s convincing break below the 21-month exponential moving average (EMA) last month signaled a resumption of the bear market from the record high of $20,000 reached 12 months ago. Essentially, the bears are in control while prices are trading below the key EMA, currently located at $5,747
Further, the corrective bounce from recent lows below $3,500 ran out of steam near $4,410 last Thursday, validating the strong bearish view put forward by the break below the 21-month EMA.
Meanwhile, historical data shows BTC broke a similar three-year December winning streak in 2013.
- As seen above, BTC scored gains in December in 2010, 2011 and 2012 before ending the trend in 2013 with a 33 percent drop.
- With bears seemingly in control after November’s sell-off, that historical pattern looks set to repeat.
That said, the odds of BTC extending the December winning streak would rise if prices clear the newly established resistance of $4,410 (Nov. 29 high).
As of writing, BTC is trading at $3,980 on Bitstamp, representing 1.1 percent drop from its monthly opening price of $4,024.
As seen above, the bullish divergence of the 14-day relative strength index (RSI) confirmed last Wednesday has failed to produce a notable rally, which indicates bearish sentiment is still quite strong.
Moreover, BTC created a doji candle on Thursday, signaling indecision in the marketplace despite a bullish divergence, falling below $4,000 on Friday and confirming an end to the corrective bounce. Essentially, the cryptocurrency has carved out a lower high (bearish pattern) at $4,400.
The 5- and 10-day exponential moving averages (EMAs) are also trending south, indicating a bearish setup.
As a result, the cryptocurrency looks set to re-test the recent low of $3,474.
However, a convincing break above $4,400 (Nov. 29 high) would revive the bullish view and allow a sustained rally to psychological resistance of $5,000.
The descending triangle breakdown (bearish continuation pattern) and the downward sloping 5- and 10-week EMAs indicate the path of least resistance is to the downside.
The 14-week RSI is holding well above 30.00 (undersold territory), meaning there is scope for a drop toward $3,000.
- The probability of BTC extending the December winning streak this year is quite low.
- BTC’s lower high at $4,400 marked the end of the corrective bounce. Therefore, a re-test of the recent low of $3,474 cannot be ruled out.
- BTC will likely score gains in December for the fourth year straight if newly established resistance at $4,400 is convincingly scaled in the next few days.
Disclosure: The author holds no cryptocurrency assets at the time of writing.
Bitcoin image via Shutterstock; price charts by Trading View
Venezuela’s President Nicolas Maduro has announced that the price of the petro, his country’s national “cryptocurrency,” has been increased from 3,600 sovereign bolivars to 9,000. While the wallet for the petro is still unavailable, the Venezuelan government continues to sell the digital currency and issue certificates of purchase to buyers.
Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations
Price Hike for Petro
Maduro announced on state television on Thursday the price increase of the petro, Venezuela’s so-called national “cryptocurrency,” effective on Friday. The announcement was made at the same time he ordered a 150 percent increase in the country’s monthly minimum wage, the sixth rate hike this year. Bloomberg wrote on Thursday:
The price for the petro cryptocurrency will rise from 3,600 sovereign bolivars [Bs.s] to 9,000.
In August, Maduro linked the price of the petro to the sovereign bolivar (bolívar soberano), the main currency of Venezuela since Aug. 20. “Each petro, as the anchor point of the sovereign bolívar, will have a value of 3,600 Bs.s,” he announced at the time.
Following Maduro’s Thursday announcement, Venezuelan economist Leonardo Buniak explained that the petro “was worth 3,600 Bs.s because the Dicom dollar cost 60 and the oil cost 60,” Atodomomento publication reported. He added, “now a petro is decreed at 9,000 Bs.s … you have just devalued the sovereign bolivar with respect to the petro and by more than 100%,” elaborating:
Anchoring the bolivar to the petro is anchoring it to nothing.
Lacking Crypto Traits
Buniak also asserted that “the petro cannot be called a cryptocurrency because the value was given by President Maduro and not the interaction between supply and demand,” the publication conveyed. He detailed:
When the president decrees that a petro is worth 9,000 Bs.s, what he is saying is that the petro is not a cryptocurrency but a debt title that is predetermined, [which] cannot be mined. It is impossible to think that it is a cryptocurrency when its value is not given by the interaction between supply and demand.
Furthermore, the wallet for the petro is still unavailable. The links to download them for Windows and Linux still pop up the message: “This wallet will soon be available for your operating system.” In addition, Tarek El Aissami, the country’s economic minister and former vice president, previously explained that Google has removed the Android app for the petro wallet from the Google Play store.
The Petro code is also not available to the public, so independent confirmation of its existence or functionality is impossible. There are also no published charts or data showing the health of the Petro network, such as network activity, confirmation times, transaction throughput, mining hashrate, or other basic cryptocurrency statistics.
The Venezuelan government’s own block explorer for the petro currently shows a total of 3,138 blocks despite the Petro whitepaper’s description of one block per minute.
Despite the petro’s lack of cryptocurrency traits, Sunacrip, the regulator in charge of all crypto activities in Venezuela, has been selling the digital currency at its headquarters since the end of October. Buyers are issued certificates of purchase after completing know-your-customer (KYC) verification involving fingerprinting.
Meanwhile, Maduro announced on Nov. 26 during a meeting with his cabinet of ministers that “tourism zones will be created in which services will be paid in international cryptocurrencies, in the petro government cryptocurrency and in international currencies,” El Nacional reported.
What do you think of Maduro raising the price of the petro against the sovereign bolivar? Let us know in the comments section below.
Images courtesy of Shutterstock and the Venezuelan government.
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