The digital colon would be a Salvadoran stablecoin pegged to the value of the US dollar. The Government denies that the plan is still in force, although leaked information suggests otherwise.

While preparing the project that would become the Bitcoin Law, El Salvador was considering creating a stablecoin. They sought to have a digital colon pegged to the local currency before the dollarization of the Central American country.

Local newspaper El Faro reported that the brothers of President Nayib Bukele presented the plan before the approval of Bitcoin as legal tender.

Ibrahim and Yusef Bukele held meetings with various foreign entrepreneurs linked to products for using and trading cryptocurrencies. Among them was Jack Mallers, CEO of Strike, who announced the Bitcoin Law alongside the Salvadoran President.

According to leaked information, the Bukele brothers presented themselves as advisers to the President, although they were not formally government officials. Ernesto Sanabria, press secretary of the President, said that the brothers of the Salvadoran head of State are his advisers for various decisions.

The digital colon plan would be to have a stablecoin pegged to the value of the US dollar. However, they would only use it internally with the wallet that the Government created. Among other things, El Salvador could again issue its money without depending on the US dollar.

On the other hand, there would be a fund of at least USD 500 million as a reserve to support the parity of the digital colon with the US dollar. They also proposed encouraging its use among Salvadorans through discounts for payments for services that the State offers.

Speculations on the Possible Validity of the Project in El Salvador

There is speculation on the possibility that this plan remains in place as the decision seemed to be final, said El Faro. Besides, the Salvadoran newspaper claimed to have documents that describe the project, contemplating the creation of the currency and a new digital financial system.

However, Sanabria denied that the plan of the Bukele brothers was still in effect. He explained that the public policy that the Government has promoted is that of Bitcoin on par with the US dollar. They would take the US dollar as the reference currency, Sanabria highlighted. He claimed that the rest were discarded ideas or simply third-party proposals.

According to El Faro, the materials they had access to do not indicate that the new digital currency will replace the US dollar. However, they noted that the Government already scheduled September 7^th as the execution date for the project. At the same time as the Bitcoin Law takes effect, there would be a proof of concept for the digital colon.

Beyond the adoption of Bitcoin as legal tender, the Government has already conducted other plans. These include creating their wallet and a bonus to encourage the use of the cryptocurrency in the Central American country.

President Bukele has not yet said anything about that information. Sanabria argued that there is no public discussion on this issue or official statement to date.

By Alexander Salazar

The restriction from the Chinese Government on Bitcoin mining on its territory caused the price to drop. Experts expect the market to remain bearish for a while due to the bearish technical pattern of the cryptocurrency.

The price of Bitcoin has hovered between USD 30,000 and USD 42,000 after its peak of USD 65,000 in April. While the sharp drop causes panic among traders, optimists believe in the value of Bitcoin and predict a bullish market.

Bitcoin mining in China concentrates 50% of the mining pools of the world. For that reason, the repression by the government against the activity caused the price to fall.

Despite its collapse, some experts predict the market will remain bearish for a while due to the bearish technical pattern. Others estimate that the price of Bitcoin could drop to USD 30,000 based on a structure known as the Symmetrical Triangle. That indicates that the value of the cryptocurrency will not increase to that point.

According to Peter Brandt, CEO of Factor LLC, there will be a decrease in a rectangular pattern. That usually shows an exchange rate that would decline to the support level of the lower rectangle at USD 30,000.

The Bollinger bandwidth is another technical indicator that suggests the falling price of Bitcoin. One common point is that the value of Bitcoin tends to hit a new low of USD 30,000.

Traders Predict that a Bullish Market Is on the Way

Although there is currently a prevalence of pessimistic predictions, veteran traders expect a bullish Bitcoin market. Their experience tells them that the cryptocurrency could go bullish again despite the risk of a bearish market.

One of the leading indicators is that institutional investors are increasingly looking to acquire Bitcoin. In this way, they take advantage of the opportunity to buy currencies at a lower price within the range of their risk tolerance.

After the dramatic drop in the price of Bitcoin in May, there has been on-chain reaccumulation of coins during eight weeks of sideways action. That information came from Sean Rooney, head of research at crypto asset manager Valkyrie Investments.

The Price of Bitcoin May Rise Again If Fear Ends

According to the bullish outlook that Willy Woo has raised, investor fear must end for Bitcoin to break to the upside. The market has been prey to uncertainty amid the rapid decline in May and the resistance that the USD 40,000 level has put up.

However, analyst Woo predicts a scenario that will allow resuming those levels and reducing fear in the market. That will be especially the case if the most clever and most experienced investors steadily accumulate Bitcoin.

According to his analysis, investors are saving an increasingly large amount of Bitcoin in the long term. Woo said that there is currently a spike in accumulation rates as the supply of coins on exchanges declines. He views that as another sign that the shortage of liquidity in the market is growing.

By Alexander Salazar

Conger has tweeted about moves to adopt Bitcoin in Jackson and has appeared convinced of its relevance in the US economy. The mayor said that the Blockchain Task Force is looking for ways to accept property tax payments in Bitcoin.

Scott Conger recently revealed that he believes in Bitcoin as a solution to the inflation in his country. He has been the mayor of the City of Jackson in Tennessee, the United States, since June 2019.

In recent weeks, Conger has been tweeting about the cryptocurrency and the moves of the city to adopt it. For several months, he has appeared convinced about the relevance of the pioneering cryptocurrency in the US economy.

In April, the mayor first announced his plan to integrate cryptocurrencies into the economy of Jackson. He said that he wants to meet with people who know blockchain technology well to discuss how to incorporate those assets in the city.

According to Conger, the first cryptocurrency on the market can provide more opportunities for constituents. He was pleased to hear governments discuss different ways of financing things. He added that having more options would allow them to put them to the test.

Scott Conger Believes that Bitcoin is an Instrument against Inflation

Scott Conger noted that the inflation rate in the United States has risen by 172.8% during his 37 years of life.

Similarly, Conger called on citizens to demand much more from the federal government. He even indicated that the value of the US dollar has been going down over time.

Conger followed the example of Miami Mayor Francis Suárez, who has lobbied to adopt tax and wage payments in Bitcoin. Besides supporting Bitcoin mining, he seeks to add the cryptocurrency to the balance sheet of the city.

Conger Creates a Blockchain Task Force to Implement Bitcoin

Mayor Scott Conger recently announced on Twitter that he would form a Blockchain Task Force. He explained that this would help explore a way to better position the City of Jackson for the future.

He noted that their group is investigating how @CityofJacksonTN can accept property tax payments in Bitcoin. Furthermore, he said it would allow their employees the dollar cost averaging (DCA) in Bitcoin.

The DCA is an investment strategy that aims to reduce the impact of volatility on large purchases of financial assets such as stocks.

Conger also explained that their Blockchain Task Force is looking for ways for the city to accept payments in Bitcoin. Similarly, the City of Jackson is working to allow its employees to pay property taxes in Bitcoin.

Curiously, the community has received the news about the Blockchain Task Force positively. Twitter users showed their support for Mayor Scott Conger’s proposal.

Conger believes that the only solution to beat inflation in the United States is the cryptocurrency of Satoshi Nakamoto. While he supports Bitcoin, most US regulators have it in their sights to regulate and ban its use.

By Alexander Salazar

Although China restricts Bitcoin mining and Elon Musk has attacked it for harming the environment, Wood remains optimistic. She believes Musk received institutional recommendations to stop accepting Bitcoin payments but predicted that he would push Bitcoin back up.

Investor Cathie Wood is the founder, CEO and CIO of Ark Invest, known as the Warren Buffett of modern times. In recent days, she said that concerns about environmental damage from Bitcoin mining would diminish.

According to the executive, those concerns are unlikely to increase in the long term.

Despite Difficulties, Cathie Wood Remains Bullish on Bitcoin

Cathie Wood told CNBC that she continues to be optimistic about the future of the pioneering cryptocurrency. Not even China’s restriction on mining and Elon Musk’s tweets about its use of fossil fuels have discouraged her.

She believes that it is best to disperse this mining to other countries, such as the United States, where it is possible to use renewable energy.

Wood also reaffirmed her confidence in Tesla, calling Elon Musk a unique and visionary leader. She even compared him to Jeff Bezos, the founder of Amazon.

The ESG Movement Contributes to the Drop in the Price of Bitcoin

A tweet that Elon Musk, CEO of Tesla, sent in May contributed to discussions on Bitcoin’s energy use. Initially, he said that his company would not continue accepting payments with Bitcoin as the network increasingly uses fossil fuel.

Wood held Elon Musk and ESG (environmental, social, and governance) investment responsible for the recent drop in Bitcoin prices.

Due to the ESG movement, a large number of institutional purchases stopped and rushed. Elon Musk exacerbated the situation by saying that Bitcoin mining is facing real environmental problems.

The CEO of Ark Invest believes that some institutions may have requested Elon Musk to stop accepting Bitcoin as a means of payment. However, she predicted that he will positively boost Bitcoin and may help reduce its environmental footprint.

Since Musk has fostered conversation and analytical thinking, she believes he will become part of the process.

Wood, a leader to hundreds of investors, has always been a staunch advocate for Bitcoin. She takes a bullish position on Bitcoin, indicating that its price could reach USD 500,000.

The Expert Believes Elon Musk Will Support Bitcoin Again

Wood believes that the demand for cryptocurrency mining may lead companies to invest in renewable energy. She foresees a reduction in environmental problems in the coming years as the electrical grid transforms.

Musk’s decision to accept Bitcoin marked a watershed moment for considering it a transaction instrument. However, when Tesla stopped its Bitcoin transactions with consumers, traditional bankers scored a victory.

If this situation continues, Bitcoin could leave its current trading range. Bitcoin could be in trouble if transaction volatility keeps Musk on the sidelines.

However, if Wood’s views are accurate, Musk’s hesitation with Bitcoin is only temporary. Therefore, Elon Musk buying and accepting Bitcoin again at Tesla would be a catalyst for the price.

By Alexander Salazar

According to CZ in its public letter, the regulations are a positive alternative for the crypto industry.

Cryptocurrency exchange Binance has been subject to numerous regulatory issues in recent times. The exchange has been struggling with situations of this kind in Thailand and the Cayman Islands. Japan is another country added to the list.

The United Kingdom also appears on the list. That is why the bank Barclays blocked the payments of its clients to the exchange.

In response, Binance CEO Changpeng “CZ” Zhao stepped out in a public letter titled: “Reflecting on Progress and the Way Forward,” in which he compared recent pressure from regulators against his exchange business to the early development of the automobile.

CZ said that the adoption and development of crypto had many similar features with automobile regulations, especially when it came to laws and guidelines developing themselves along the way.

In the letter, the CEO also reiterate that his exchange had requirements to use its platform. In addition, he highlighted that in July, an emergency insured asset fund (SAFU) was designed to protect users’ assets and listing standards.

5,600 Research Requests

The letter also says the exchange protects users through its work with law enforcement agencies such as the US Internal Revenue Service (IRS), the UK South East Regional Organized Crime Unit, and others. to fight against cyber-crimes like money laundering, terrorist financing, and scams.

CZ said in the letter:

“So far in 2021, we have already completed the assistance of 5,600 investigation requests, which is 100% more than in 2020. Recently we supported the takedown of a prolific cybercriminal network responsible for laundering more than $ 500. million in damage from dark web operations and high-profile cyber-attacks.”

Likewise, CZ believes that more regulations are positive signs that an industry is growing up because this paves the way for more population to feel safe, and participate in crypto. The CEO also assures that a well-developed legal and regulatory framework in the long term will serve as a solid foundation that would make cryptocurrencies an essential asset in daily life.

The CEO highlights Some Important Points in the Letter:

Compliance is a journey, especially when it comes to digital currencies. The industry is still uncertain so we recognize that with growth comes more complexity and even more responsibility.”

The CEO also talks about the rapid growth that Binance has experienced, and that they have not always done everything exactly right, but they are learning from mistakes and improving every day. The CEO said they want to clarify and reiterate their commitment to join efforts with regulators and proactively hire more talent.

The exchange also considered setting the implementation of more systems and processes to protect users.

 The CEO is Moving Forward

CZ spoke about the expansion of the international compliance team. He said on the matter that they have increased their international compliance team and the advisory council by 500% since last year.

Relevant appointments include the former FATF executive secretary Rick McDonell and former head of the Canadian delegation to the FATF Josée Nadeau as regulatory and compliance advisers. Max Baucus, former US senator for Montana and US ambassador, will take the lead in China.

With all these plans, Binance intends to increase its team by the end of the year, with qualified and experienced advisors to add assistance and support.

By: Jenson Nuñez

Financial losses from ransomware currently surpass the losses registered back in 2020. REvil leads the hackers’ list with over $ 10 million.

According to data from the Ransomwhere platform, the cybercriminals managed to extract around 60,000 bitcoins in ransom payments during 2021.

Ransomwhere is a new platform launched by Jack Cable, security architect at cybersecurity consultancy Krebs Stamos Group, which has played a vital role in protecting electoral systems ahead of the 2020 U.S. presidential election.

This tool keeps a continuous tally of ransoms paid in bitcoin to hackers. The data gets collected due to the transparent nature of the network, which records all transactions on the blockchain. In this way, the platform acts as a great public ledger that allows anyone to trace any transaction, including those associated with ransomware groups.

At the moment, the operators behind the REvil or Sodinokibi ransomware lead the list with more than $ 10 million for data theft. The third-place goes for the group of malicious hackers known as DarkSide, who have stolen around USD 4 million. These hackers are also responsible for the recent attack on the U.S pipeline.

Ransomware is some kind of malware that compromises digital devices and hijacks vital information from users. The attackers then request a cryptocurrency ransom as extortion for handing back the data and avoiding vital damage.

Ransomware Attacks are the New Fashion

A ransomware attack can aim at both companies and individuals, although it is not usual for individuals to become victims of such criminal behavior. The financial losses because of a ransomware attack doubled those of 2020.

Even after the affected parts paid the ransoms, the chances of recovering the encrypted data went below 65%. This data goes according to a study by the company from computer security, Sophos.

Last month, Barracuda Networks, a security company, stated a report saying that the volume of cyberattacks, including ransomware, increased by almost 200% between October 2020 and May 2021, when the price of Bitcoin faced a bullish period.

The Ransomwhere tool makes this data available for anyone to consult. As a platform focused on contributions, it incorporates data from incidents of ransomware attacks that anyone can submit. On their site, users can also spot the registered addresses used by cybercriminals to commit crimes.

According to Ransomwhere official site, the platform requests the informant for a screenshot of the ransomware demand for payment, and each case receives its review before granting its availability to the public. They warn that there is no possibility to guarantee 100% of the reviewed information.

Global Unity to Fight Against Ransomware Attacks

The high rate of ransomware attacks has led the group of the world’s largest economies, the G7, to join efforts, and take action together to fight against these kinds of criminal activities. The United States of America has been one of the most affected nations.

According to a report by security firm Kaspersky, the hasty implementation of remote work solutions has decreased the security for companies. Kaspersky also revealed in its 2021 Financial Threats report, that this year would be a year with an unprecedented rate of cyberattacks.

In countries like the United Kingdom, a ban on insurers received approval. This banning measure intends to cover payments in bitcoin to cybercriminals. The proposal by Diaran Martin, a former official with Britain’s National Cyber   Security Center, argues that these payments encourage criminals to keep perpetrating more attacks.

By: Jenson Nuñez