Three German political parties agreed to a coalition deal considering the opportunities of crypto assets and blockchain businesses. The Bank of Russia noted the increasing role of Russia in the cryptocurrency market, suggesting that citizens trade around USD 5 billion yearly.
The Governor of the Bank of England (BoE) Andrew Bailey recently expressed concern about adopting Bitcoin (BTC) as legal tender in El Salvador. He made that statement after President Nayib Bukele announced the launch of Bitcoin City.
The decision of El Salvador to adopt Bitcoin as a currency startled Bailey since he considers consumers may suffer the extreme volatility of the cryptocurrency.
According to Bloomberg, Bailey told the Cambridge University student union that he is worried that any country will choose it as its national currency.
The governor also wonders whether Salvadorans understand the nature and volatility of Bitcoin, which most concern him.
A German Government Cites Cryptocurrencies in Its Coalition Deal
The new German government advocates for an even playing field between traditional finance and innovative business models. In that regard, they recently cited cryptocurrencies in their coalition deal.
Three German political parties agreed to a coalition deal in the last week. It will see the Left Social Democrats (SDP), the Green Party and the Free Democrats take the reins from December.
A translation of the 177-page agreement states that the coalition is calling for a new dynamic. It will consider the opportunities and risks of new financial innovations like crypto assets and blockchain businesses.
The parties said they are adapting the European financial market supervision law to digitization and complex group structures. They seek to guarantee holistic and risk-appropriate supervision of new business models.
The US Now Leads Bitcoin Mining Following the Repression in China
The United States has dethroned China as the world leader in Bitcoin mining after the renewed repression against the industry in the Asian country.
Recent data from the Cambridge Center for Alternative Finance (CCAF) shows that the US accounts for 35.4% of the global hash rate. That represents the total computing power used to mine Bitcoin worldwide in late August, more than twice 16.8% in late April.
The US preceded Kazakhstan and Russia, whose shares were 18.1% and 11%, respectively, compared to 8.2% and 6.8% in April, according to the CCAF.
The share of China has effectively dropped to zero, following the government-imposed ban on crypto mining in the country.
Russians Trade USD 5 Billion Worth of Cryptocurrencies Every Year
According to the central bank of Russia, the citizens of that Eurasian country are among the most active participants in the cryptocurrency market worldwide.
The Bank of Russia recently released a new review on financial stability, noting the increasing role of Russia in that USD 2.8 trillion market.
The institution cited estimates that leading banks reported in July, suggesting the total volumes of Russians. They say that the population trades around 350 billion rubles, equivalent to USD 5 billion, every year.
Nobody is sure whether the Bank of Russia has converted those estimates, as the price of Bitcoin has almost doubled since July. It has gone from around USD 30,000 to more than USD 60,000 in November. Some analysts have forecast that it may even reach USD 100,000 by the end of this year.
By Alexander Salazar
