28 April

Confirming rumors that had been around for a few days, the Central African Republic has become the second nation in the world to adopt bitcoin (BTC) as legal tender. The legislation established a legal and regulatory framework for cryptocurrencies, and made bitcoin legal tender alongside the existing CFA franc.

There’s a common narrative that sub-Saharan African countries are often one step behind when it comes to adapting to new technology. This time, we can actually say that our country is one step ahead.

The Central African Republic has a population of 4.83 million, around 11% of which have access to the internet.”

BlackRock, the world’s largest asset manager, has listed its iShares exchange-traded fund (ETF) to allow investors to gain exposure to the blockchain and cryptocurrency market. The ETF comes soon after brokerage firm Fidelity launched two ETFs to track the crypto industry and the metaverse.

The iShares Blockchain and Tech ETF (IBLC) ‘seeks to track the investment results of an index composed of U.S. and non-U.S. companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies.’

Blockchain tech is allowing independence and control of personal data while enabling financial inclusion for billions of unbanked consumers.”

See Also: 21Shares launches hybrid Bitcoin and gold ETP to enable inflation hedge
See Also: Dragonfly Capital Raises $650M as Billions Flow Into Web3 Funds

Only four of 10 Salvadorans who downloaded the state-run bitcoin (BTC) wallet Chivo said they still use it after obtaining the $30 bitcoin incentive. In addition, 5% of Salvadorans paid taxes using bitcoin, while 20% of firms accept bitcoin and 11.4% said they had positives sales using the cryptocurrency.”

The median user reports no ATM withdrawals, and no payments sent or received in bitcoin in a given month. Although most citizens in El Salvador have a cell phone with internet, less than 60% of them downloaded Chivo Wallet.

See Also: Flexa Expands Payments Suite for Multiple Cryptocurrencies and Wallets

“With inflation reaching new highs month after month, and the Federal Reserve taking an increasingly hawkish stance, the U.S. economy is exposed to an elevated risk of upcoming recession.

The COVID-19 recession that began in February 2020 and lasted through April of that year – the most recent in the U.S. – did, however, have a positive impact on cryptocurrencies. It shot bitcoin (BTC) to an all-time high above $28,000 and, more importantly, caused investors and Wall Street firms to start taking the largest cryptocurrency by market capitalization seriously.

But if analysts are right, and the U.S. economy is bound to go into another recession as early as next year, the cryptocurrency market could see a very different outcome this time.

Because of bitcoin’s recent strong correlation to U.S. stocks – from the Nasdaq Composite Index to the Standard & Poor’s 500 to the tech-heavy Nasdaq 100 – the largest cryptocurrency’s performance will likely depend on what the broader markets do, according to some analysts.

[Ultimately], a recession that drives down stocks might push the Fed to reverse its hawkish stance and move back to a more accommodative stance. And that could end up being a good thing for bitcoin and cryptocurrencies.

Digital assets create value through network growth and brand loyalty as opposed to equity and debt, which represent a claim on assets.

Given this backdrop, it’s possible digital assets are the only asset class that a recession wouldn’t negatively impact. During an extended recession I think we will see positive price movement.”

See Also: Purpose Bitcoin ETF adds 1.1K BTC as data hints investors want to ‘buy the dip’

New European Union proposals to monitor crypto transactions with unhosted wallets could breach the risk-based approach set out by international money laundering regulators, an official from the bloc’s own banking authority has said. Policymakers from the European Commission also warned any decision to scrap a 1,000-euro threshold for identifying crypto payers would need to be backed by evidence.

In particular, plans to force large transactions with unhosted wallets to be automatically reported to the authorities could prove overwhelming, the European Banking Authority’s Joana Neto said at an event held Wednesday at the European Parliament in Brussels.

Who’s going to handle this? … If it’s going to be the competent authority, what are they going to do with that information?

Our message to the co-legislator is that the solution they must take must be risk based and proportionate. Are there differences in the risks that justify a different treatment?”

See Also: Europe’s Lawmakers Set to Advance Discussion of Controversial Crypto AML Rules