Table of Contents
Welcome to today’s overview of crypto news:
As in the last few weekends, BTC lost power after Saturday’s arrival. Positive news from El Salvador drove the assets above $ 37,000, but within hours it fell well below $ 35,000. Although he recovered a bit on Sunday, there was another price drop, during which BTC fell to $ 34,750.
At this point, however, Elon Musk has indicated that Tesla will resume payments at BTC as soon as at least 50% of production comes from clean energy sources. BTC responded immediately with a sharp increase of $ 1,500, and then $ 4,000 when the news reached the media.
The Altcoins followed their leader. ETH fell below $ 2,300 on Saturday, but added more than $ 200, reaching an intraday high of around $ 2,550.
China’s crackdown on BTC mining has reached the fourth largest production province
Over the weekend, the Yunnan Provincial authorities issued a notice ordering an investigation into the alleged illegal use of electricity by individuals and companies involved in BTC mining.
According to a report by the China Securities Journal, the provincial energy ministry has threatened to cut off energy supplies to those caught using electricity to mine cryptocurrencies. The SCMP said the authorities would also close all BTC mining operations by the end of June, which may “pose a security risk related to their use of electricity”.
Yunnan ranks fourth in China in terms of BTC hashrate, and joins other regions such as Inner Mongolia, Xinjiang and Qinghai, which have also been notified of the closure of some or all of the mining farms in their area.
Tom Lee of Fundstrat says that BTC needs to be further developed
According to Fundstrat analyst Tom Lee, Elon Musk’s market-moving tweets show that BTC is still not mature enough. In a recent tweet, a well-known permabull also claims that the sensitivity of the cryptocurrency to one person’s actions proves that institutional investors are not there because their influence on the market is “very small”. Lee expects BTC’s volatility to subside as the share of sophisticated investors grows.
After taking a break from cryptocurrency tweets, Musk returned to his old tracks yesterday. The CEO of Tesla announced on Twitter that the e-car manufacturer will resume payments in BTC when the share of green energy reaches 50%. Miners’ dependence on fossil fuels was the reason Tesla suspended payments last month. After Musk’s last tweet, the cryptocurrency flew to $ 39,838.
Banks, crypto exchanges, companies
Money transfer companies hesitate to support BTC despite legal tender law in El Salvador
Despite a recently passed law mandating the use of BTC as legal tender in El Salvador, local money transfer companies are reportedly hesitant to adopt the BTC.
Kenneth Suchoski, a fintech analyst at Autonomous Research, told Reuters that remittances are unlikely to launch support for BTC and other cryptoactive assets until customer demand urges them, likely to create a stalemate for the local payments industry.
“For Western Union and some other remittance providers, keep in mind that most of the volume in the remittance industry goes from developed markets to emerging markets, primarily to people, families and friends who operate in cash.”
– he said.
Coinbase is reportedly planning to set up an office in New York
America’s largest crypto exchange, Coinbase, is reportedly setting up its first branch in New York. A Nasdaq-listed crypto exchange reportedly leased 30,000 square feet from Steven Cohen’s Point72 investment company at the Related Companies in Hudson Yards in New York, the New York Post reported on Sunday.
Referring to sources from the real estate company, the report states that the planned New York office of Coinbase makes up only a small part of Point72’s total 339,000 square feet in this tower. The report also states that the Hudson Yards area is known primarily to corporate, media and legal tenants, but not to technology companies.
“It’s a new user brand not only for Related’s Hudson Yards, but for the entire Far West Side area,”
– one of the market observers reportedly said.
The Central Bank of Nigeria plans to pilot the CBDC by the end of 2021
Rakiya Mohammed, an IT specialist at the Central Bank of Nigeria (CBN), announced that the bank is working to introduce the country’s digital currency digital currency. According to a report by the People’s Gazette, Mohammed said this after a meeting of the banking committee held in Abuja on Thursday and told reporters:
“Before the end of the year, the central bank will make a special announcement and possibly launch a pilot program to provide this type of currency to the population.”
As early as May, CBN Governor Godwin Emefiele said digital currencies in Nigeria would “come to life” despite the current ban. In February, the Central Bank of Nigeria banned commercial banks and other financial institutions from operating cryptobours, citing refuted allegations that cryptocurrencies were used primarily for illegal transactions. [4a]
Brazil’s central bank has postponed the CBDC’s schedule for 2024
Brazil’s central bank Banco Central do Brasil (BCB) is calling for more time to introduce the digital currency of the central bank (CBDC).
In early May, the BCB issued a document that includes general guidelines and characteristics of the future Brazilian CBDC. Roberto Campos Neto, BCB’s chief banker, also said earlier last year that the country was likely to be ready for a digital currency by 2022.
However, the central bank is now postponing this project, citing uncertainty within the financial infrastructure and the international environment.
BCB recently launched a new payment system called PIX, which was created to address the growing digitalisation of the Brazilian economy and the lack of easily accessible payment methods. The central bank is also expected to launch its open banking model in the near future to strengthen Brazil’s financial systems.