Bukele shared a video showing the future veterinary hospital displaying a Chivo Pets sign at the entrance. Members of the Twitter crypto community assumed that El Salvador would accept the Shiba Inu cryptocurrency meme.

Salvadoran President Nayib Bukele recently announced that the state plans to build a public veterinary hospital. They will use part of the profits that the rise in the price of Bitcoin (BTC) left to the government trust FIDEBITCOIN.

Bukele noted that FIDEBITCOIN has a surplus of USD 4 million, concerning the amount that the law establishes that it must manage.

In his Twitter account, the president of El Salvador gave details about the construction of the veterinary hospital. Bukele highlighted that Bitcoin is beneficial for the pets of the citizens of the Central American country.

He reported that the veterinary health center would include twelve consultation offices, four emergency offices, four operating rooms, and a rehabilitation area. In addition, he said it would have isolation and hospitalization rooms, a recovery area, seven offices, a laboratory, and two classrooms.

According to the president, all that will allow for 384 consultations, 128 emergencies, 64 surgeries, 63 hospitalizations, and 128 rehabilitations daily.

President Bukele also shared a video showing what the veterinary hospital would look like once completed. Curiously, there is a sign that says Chivo Pets at the entrance of the health care institution.

El Salvador Will Not Adopt the Shiba Inu Token as a Currency

Before announcing the construction of the veterinary hospital, Nayib Bukele tweeted that he had a surprise for Salvadorans. The head of state of El Salvador accompanied that post with dog paw emojis.

Many members of the Twitter crypto community assumed that the surprise would have to do with the Shiba Inu (SHIB) cryptocurrency meme. Some of them even believed that Bukele was a long-term holder (whale) of that crypto asset.

The price of that ERC-20 token has exceeded 260% in the last seven days and 2,000% in a year. Shiba Inu is in position number 11 in the cryptocurrency market, behind Dogecoin (DOGE).

However, other people were right about their speculations and predicted the news about the construction of the veterinary hospital. During the campaign for the presidential elections, Bukele had promised to build public veterinary hospitals.

Supporters of the president congratulated him on the current announcement, while detractors of the measure criticized him. The latter argued that there were much more important things and that animal owners should take them to private veterinary clinics. Twitter user Edwin Torres expressed that he did not understand the reason for paying for other people’s likes.

Just over a month after the Bitcoin Law entered into force, the initiative is already benefiting the citizens of the Central American country. While many people accept and others reject that decision, various areas of Salvadoran life are changing.

El Salvador is the first country to adopt Bitcoin as legal tender. Although there have been obstacles in that process, the Central American nation serves as an example for others wanting to do the same. Salvadorans can take advantage of that crypto asset through education and access to the necessary tools.

By Alexander Salazar

That US government entity could be analyzing whether stablecoins are deposits or whether their ownership represents a deposit to the issuer. The government will subject the issuers of USDT and USDC stablecoins to regulations like banks after questions about their endorsement.

The US Federal Deposit Insurance Corporation (FDIC) is studying deposit insurance for stablecoins. For that reason, they are conducting preliminary talks to allow the coverage of the deposits of those assets.

That US banking regulator is evaluating whether certain stablecoins could be eligible for coverage. They are particularly studying transfer insurance for the reserves of stablecoin users at banks.

If the bank holding the collateral were to fail, the coverage would insure the holders against losses of up to USD 250,000. That occurs specifically amid stablecoin regulation in the United States.

The Purpose of the Creation of the FDIC

The FDCI is a government agency that seeks to protect consumers and the US financial system. People usually identify that body with the deposit insurance with which they help citizens when a bank fails.

The Glass-Steagall Act of 1933 created the FDCI to prevent bank failures during the Great Depression. Since then, that agency has stated that no depositor has lost a single penny of the insured funds.

The FDI Analyzes the Issuance of Stablecoins

The FDIC analyzes banks that want to issue stablecoins to see how regular direct deposit insurance would work. A government source explained that this is part of a process to bring those assets into the banking system responsibly.

That person added that it would all depend on what supports stablecoins. For example, he argued that they are simply a deposit if reserves at the Fed back them. Likewise, he expressed that it would be difficult to treat them as a deposit if the Treasury supports them.

Former FDIC attorney Todd Phillips stated that the US government entity might be analyzing whether stablecoins are deposits. He also said they might want to know whether ownership of a stablecoin represents a deposit for the issuer.

Phillips also recalled that each person has insurance for only USD 250,000. For that reason, the stablecoin issuer would have to investigate who the current holder of its stablecoin is and how many units he owns.

The lawyer announced that the FDIC has the objective of guaranteeing the security of the Deposit Insurance Fund (DIF). If the FDIC insured a stablecoin, the insurance would come out of the DIF. Therefore, the FDIC would like to ensure that they have a legal basis not to put the DIF at risk.

Regulations Will Be Similar to those of Banks

The Wall Street Journal recently announced that the government would subject stablecoin issuers to regulations like banks. Joe Biden’s administration is scrutinizing the USDT and USDC stablecoins, following questions about their endorsement.

The design of those assets seeks to maintain a stable price concerning a specific currency. For that reason, the value of a fiat currency, a physical product, the financing of a company, or even another cryptocurrency can support them. The best known include Tether (USDT), Paxos Standard (PAX), TrueUSD (TUSD), USDCoin (USDC), Binance USD (BUSD), and DAI.

By Alexander Salazar

Verster recognizes cryptocurrencies allow cross-border transactions amid hyperinflation and government restrictions to move money. The executive believes that digital assets have no intrinsic value, do not produce anything, and have elements of a Ponzi scheme.

Hedge fund guru Jean Pierre Verster recently spoke about the market and the value of cryptocurrencies. Even though he is against those assets, he recognizes they have certain advantages that have made them grow.

The executive believes that blockchain technology has many applications in open ledgers and records. He also mentioned that they allow making secure transactions as users cannot alter the recorded data.

The founder of Protea Capital Management said that those assets allow making cross-border transactions amid hyperinflation and government restrictions to move money. He highlighted that this is what has made the use of crypto assets so popular. 

Regarding his position against cryptocurrencies, he expressed that there is no intrinsic value in cryptocurrencies. Furthermore, he considers that those assets involve elements of a Ponzi scheme, which supposedly prevents him from investing in them.

Verster is Not Interested in Investing in Cryptocurrencies

Jean Pierre Verster noted that the limitations of forex platforms and inflation are legitimate factors driving the popularity of cryptocurrencies. However, he does not stop attacking the use of blockchain technology in those assets.

The guru predicted the troubles of the African Bank and Steinhoff and sold their shares short. He has also said that he did not like speculative assets, for which cryptocurrencies are not part of his investment strategy.

According to the executive, digital assets have no intrinsic value and do not produce anything, so it is impossible to earn interest. He further argued that there could be a crash in the values, which he relates to as a scam.

He expressed that cryptocurrencies have elements of a Ponzi scheme, as their prices rise for a long time and then collapse. Those investment frauds focus their energy on attracting new customers, promising them high returns.

Other Investors Are Against Cryptocurrencies Despite their Clear Advantages

Berkshire Hathaway CEO Warren Buffett and other well-known investors support Verster’s view that Bitcoin and altcoins have no intrinsic value. Former US President Donald Trump recently said that cryptocurrencies are worth nothing, and he associates them with illegal activities.

Verster warned of an imminent collapse if cryptocurrency users wanted to trade currencies. Furthermore, he noted that monetary restrictions and inflation are the fundamental factors favoring the popularity of cryptocurrencies like Bitcoin and Ether.

Although many people have openly expressed their rejection of cryptocurrencies, this has not prevented that market from growing. Some investors believe that Bitcoin and altcoins are worthless and only contribute to illicit activities. However, those assets have helped those wanting to conduct transactions privately without the control of third parties.

Bitcoin and other cryptocurrencies have proved to be efficient tools to fight inflation in countries with many unbanked citizens. They allow people living abroad to send money to their relatives with no intervention from government authorities. Besides, the number of illegal activities committed with them is much lower than with fiat money.

By Alexander Salazar

Many people prefer to pay with Dogecoin because it is cheaper than Bitcoin, its transaction fees are lower, and its supply is unlimited. Cuban believes that it would be better if the players on his basketball team received US dollars and decided whether to convert them into cryptocurrencies.

Renowned billionaire Mark Cuban recently explained why many people pay with Dogecoin (DOGE) rather than with Bitcoin.

The owner of the Dallas Mavericks has long expressed his support for Dogecoin as a payment method. Fans of the basketball team can purchase tickets and merchandise with the meme cryptocurrency on their website. However, Cuban said that payments with Bitcoin have not provided him with as much income as those with Dogecoin.

Mark Cuban noted that Bitcoin is a highly appreciating asset, so people are less likely to pay with it. He argued that they prefer to store their coins to generate future profits.

The businessman expressed that he has never told anyone that Dogecoin is a high investment. He only explained that he considers it a great way to understand cryptocurrencies and invest in them.

These Are the Reasons to Pay with Dogecoin

The Dallas Mavericks team has benefited from the support from Cuban for payments with Dogecoin. The billionaire stated that trades with the cryptocurrency meme increased by around 550% in the first month. Besides, he said that there had been great sales through DOGE as people are more willing to pay with it.

Cuban considers Bitcoin a store of value, while Dogecoin is a short-term investment for most cryptocurrency users.

Ordinary people find paying with Dogecoin easier than paying with Bitcoin since the former is cheaper. Besides, the low transaction fees and unlimited supply make it a less complex payment method than the pioneering cryptocurrency.

Dogecoin is trading at around USD 0.2495 while its market capitalization is approximately USD 33 billion, according to CoinGecko.

NBA Teams Receive their Salaries in Cryptocurrencies

Concerning his opinion about paying salaries to the players of his basketball team with Bitcoin, Cuban said that he had no problems. However, the businessman added that it would be better if they received US dollars and decided whether to convert them into cryptocurrencies or not.

The billionaire spoke about his investment in Dogecoin, saying that he had increased his holdings to USD 1,500. At the beginning of the year, he received strong criticism because he only had USD 500 worth of DOGE. In that sense, Cuban expressed that he never told anyone that he had made a high investment.

Mark Cuban believes that investing in Dogecoin is a positive way to understand the cryptocurrency market better. He clarified that he had only bought the meme cryptocurrency for fun. The billionaire said it was a better investment than a lottery ticket if someone wants to hit a home run.

The businessman has already expressed his interest in betting on the cryptocurrency meme on other occasions. He said in August that he and his 11-year-old son owned Dogecoin, Bitcoin, and various altcoins like Ether.

By Alexander Salazar