14.01.2022 - 10:35 Michael Golikov
The development of a new stablecoin, the reasons for the Dogecoin growth, and a new country that will adopt bitcoin as its official currency.
It has been a busy week for bitcoin holders. On January 10, the value of the asset broke through the psychological mark of $40 000 and dropped to $39 800. However, the price did not stay at that level for long, and by January 11 bitcoin began to recover steadily. Today, according to CoinMarketCap, bitcoin is trading around $42 800, giving investors the reason to hope that the market situation will stabilize. The second cryptocurrency, Ethereum, has gained 3,9% in the past seven days, while Binance's native token, BNB, is up 10%.
The total capitalization of the crypto market now stands at $2,052 trillion, with bitcoin dominating at 39,5%. As can be seen on the infographic of the Coin360 portal, the overall market backdrop is in the green zone.
Another Dogecoin rally
Elon Musk continues to be one of the most influential figures in the cryptocurrency market. His tweets in support of Dogecoin have led to sharp fluctuations in the coin’s exchange rate throughout 2021, and the beginning of the new year was no exception. On January 14, the news appeared on the network that Tesla is starting to accept Dogecoin for payment. Cybersquad, an electric children's quad bike, is already available for sale in the company's online store for the cryptocurrency. The cost of such a device is 12 020 DOGE. In addition, the coin’s description has also appeared on a separate company page.
This news led to a 17% rise in Dogecoin, with the price per coin now standing at $0,196. However, the project is still not in the top 10 in terms of capitalization, yielding the tenth place to the Polkadot cryptocurrency.
A new player in the stablecoin market
On January 12, it became known that a group of US banks have teamed up in a consortium to jointly participate in the development of a new stablecoin. The asset, called USDF, will be issued by such institutions as Synovus, New York Community Bank, FirstBank, and Sterling National Bank. In this, the Federal Deposit Insurance Corporation (FDIC), an industry regulator, has backed the project.
The consortium plans that the new stablecoin will solve the problem of the reserves and become a competitor for such leaders as USDT, USDC, and BUSD. The arrival of the big players in the market may change the rules of the game and lead to a decrease in the share of the independent stablecoins issued by private companies.
What was going on in Russia?
One of the main news of the Russian market was the statement by Alexander Bastrykin, Chairman of the Investigative Committee of Russia, about the need to introduce an identification procedure for all cryptocurrency users. The reasons for changing the legislation are still the same: the fight against money laundering and terrorist financing.
Bastrykin's idea was also supported by the Prosecutor General's Office of the Russian Federation. The head of the agency, Igor Krasnov, plans to introduce the concept of “cryptocurrency” into the criminal law space. The new measures will allow the authorities to arrest and confiscate the digital assets that are in illicit circulation.
Global adoption of cryptocurrencies continues
Following El Salvador, which last year recognized bitcoin as an official tender, Tonga may take the same step. It is a small island state in Polynesia with a population of just 100 000 people. According to the official statements, this can happen as early as November 2022.
1. Sept/Oct Bill goes to Parliament. Passed.2. Sent to Palace Office for submission to His Majesty for Royal Assent.3.<A month - HM as advised by Privy Council assents to Bill.4. 2-3 Weeks Gazetted by Govt activation date set.4. On activation date #BTC becomes legal tender. https://t.co/TNjQjeEbjN— Lord Fusitu'a (@LordFusitua) January 12, 2022
Changpeng Zhao, the founder of the largest cryptocurrency exchange Binance, also spoke out about the global adoption and implementation of cryptocurrencies. According to the entrepreneur, in 2022 this area awaits explosive growth and widespread adoption in all spheres of life. The key directions that will be in demand this year are social finance (Social Fi) and gaming finance (GameFi). In addition, Changpeng Zhao believes that the recognition and acceptance of cryptocurrencies by the various states may grow from the current 5% to 20%.
Uncertainty in the field of mining
The attitudes of the authorities of the various countries towards mining remain polarized. Some jurisdictions create special conditions for mining cryptocurrencies, while others continue to impose new bans and restrictions.
This week, Georgia joined the fight against illegal mining. The blame lies with the congestion of the power grids in Svaneti. Minister of Economy Natia Turnava said that the cases of illegal household mining are unacceptable and called for a special power supply schedule in the region.
In Kosovo, the authorities continue to confiscate the cryptocurrency mining devices after a total ban on mining was imposed. This week, the police seized 272 bitcoin mining machines “Antminer” in Leposavic municipality and another 39 units in the Pristina area. The main reason for the bans is the ongoing crisis caused by the rising energy prices.
In Spain, on the contrary, the authorities plan to create favorable conditions for the mining industry. In particular, the politicians have proposed to make the country a safe haven for the miners from Kazakhstan, who were forced to stop their activities because of the ongoing protests. Maria Muñoz, a member of the Congress of Deputies, published a tweet in which she expressed confidence that Spain will be able to provide the miners with the decent conditions to move and restart their businesses.
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