Bitcoin’s recognition as a foreign currency, the metaverse boom and a detailed analysis of digital assets in Getblock’s review

​The final theses on the regulation of the Russian crypto market and other key events of the week

11.02.2022 - 11:15

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4 min

The past week has been a positive one for bitcoin supporters. The exchange rate of the asset finally broke through the $40 000 mark and is trading around $43 480 as of February 11 (according to the CoinMarketCap portal). The growth in the past seven days amounted to 14,39%.

The second cryptocurrency, Ethereum, also shows positive dynamics. The asset grew by 9,46% over the week. The native token of the Binance cryptocurrency exchange (BNB) brought investors 10,4% profit.

The total capitalization of the crypto market declined slightly over the week, from $1,756 trillion to $1,708 trillion, with bitcoin dominating at 41,9%. Ethereum’s share is 18%. As can be seen on the infographic of the Coin360 portal, most of the assets are in the green zone.

The source: Coin360

How the crypto market will be regulated in Russia

This topic continues to be a major one in our reviews. After lengthy disputes, the authorities have decided on the main theses and will gradually introduce new regulations.

Cryptocurrencies are proposed to be regulated not as a financial asset, but as foreign currencies. The users living in Russia will be required to undergo a full identification, and all transactions will be made through the Russian banking system.

There remains a limit related to the number of transactions. If it exceeds 600 000 Russian rubles, transactions have to be declared and taxes paid. A final version of the bill will be presented before February 18. If it is passed, the new regulations will come into force as early as this year.

The representatives of the Russian Association of Cryptoeconomics, Artificial Intelligence, and Blockchain (RACIB) have proposed their own vision for the taxation of mining and cryptocurrencies. The proposals include dividing investors into qualified and unqualified. In addition, cryptocurrency is proposed to be subject to a property tax and levied at a rate of 13%. As for the sphere of mining, the RACIB believes that production costs should be deducted from the sale of mined cryptocurrency and the difference should be taxed at a rate of 20%.

CBDC news

The launch of a digital stablecoin for the eurozone has been delayed. It was revealed this week that a digital euro bill will not be introduced until 2023. According to the European Commissioner for Financial Services Mairead McGuinness, the consultations on the options for using the asset will begin shortly. Only after that will the regulators define scenarios for the development and launch of the digital euro. If all parties reach a consensus, the new asset type will not appear in the European Union before 2025.

An interesting study on CBDC was published this week by the Federal Reserve Bank of Boston (USA). The institution is conducting a technological experiment aimed at creating an effective digital means of payment. It has resulted in one code base that is capable of handling up to 1,7 million transactions per second.

The second phase of the experiment will involve improving the privacy, sustainability, and functionality of the technology.

Brands are coming to the metaverse

The trend towards virtual worlds is gaining momentum. There have been several high-profile developments in the metaverse this week.

The fast-food restaurant chain McDonald’s has filed 10 trademark applications related to the metaverse and digital assets. The company’s upcoming plans include opening a virtual restaurant and holding various events in the metaverse.

On February 9, it became known that fashion brand Gucci has acquired a space in The Sandbox metaverse. Gucci plans to open its own store with clothes and accessories in the virtual environment.

The meme cryptocurrency Shiba Inu is also trying to keep up with trends and this week announced the creation of its own version of the metaverse. The preliminary name of the project is Shiberse. The project’s participants will be able to buy virtual items and real estate in the metaverse.

Interesting news was also shared by the Decentraland team. On February 5, the first wedding ceremony was held in the metaverse. The wedding took place in the virtual estate of Rose Law Group. It was attended by 2000 guests. A marriage license was issued in an NFT format.

Author:

Michael Golikov Michael Golikov

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