The fund executive FD7 Ventures claimed that Bitcoin is “quite useless” and considers that Polkadot and Cardano are better options.

An investment fund is exchanging Bitcoin for two other cryptocurrencies, and none of them are Ethereum. This cryptocurrency investment fund comes from the United Arab Emirates.

Dubai-based FD7 Ventures announced its intentions to sell a total of $ 750 million of its Bitcoin (BTC) holdings to increase its positions in Cardano (ADA) and Polkadot (DOT). The sale represents the majority of the company’s Bitcoin holdings.

The crypto investment fund with $ 1 billion under management said it would take over the Move for the next 30 days. The Move intends to better respond to FD7 investors looking to diversify their portfolios in the crypto environment.

According to the statement, company executives consider that the leading cryptocurrency has already accomplished its goals, and new Blockchain projects “on the rise” represent a better option.

On this matter, Prakash Chand, managing director of FD7 Ventures, stated that aside from the fact that Bitcoin was the first to be traded and society has given it meaning as a store of value, Bitcoin is quite useless.

Ventures are Trading Bitcoin for Cardano and Polkadot

Polkadot and Cardano are high-speed networks that can support low-cost smart contracts and provide new developers’ scalability.

They are part of the group of so-called ‘third-generation blockchains,’ which seek to solve the main problems experienced by previous Blockchain projects, such as transaction speed, shipping costs, network efficiency, etc.

The managing director of FD7 Ventures added in this line that “projects such as Cardano, Polkadot, and Ethereum are the basis of the new Internet and Web 3.0”. Furthermore, Chand seems confident that these coins will eventually outperform Bitcoin.

The Cardano team is working towards a Blockchain solution to address millions of unbanked people in Africa and other countries. Simultaneously, Polkadot continues to build an ecosystem of “moonshot” projects that enable a fully decentralized platform for Web3 where users are in control.

Cardano co-founder Charles Hoskinson seemed enthusiastic about the news and congratulated the investment fund. Through a tweet, Hoskinson wrote: “Welcome to FD7 Ventures to the ecosystem. Please let us know your needs for technical support, and we would love to see you at Catalyst. “

This Move Represents a big Boost for Polkadot and Cardano

FD7 claims to have already started its ADA and DOT purchase and expects to consolidate both transactions between mid-to-late March. Although the fund executive added Ethereum among the most relevant projects, the firm did not mention whether it plans to invest a considerable amount of its capital in cryptocurrency. (FD7 currently manages holdings in ether.)

Polkadot, which has just undergone an update, plans to launch Parachain’s testnet, the last piece of core functionality that will allow the network to realize its scalable multi-chain architecture.

By: Jenson Nuñez

Government authorities of the country visited the facilities of the farm. In addition to mining cryptocurrencies, they will conduct activities to educate.

The Lothal Mining Company recently installed the equipment of the first cryptocurrency mining farm in Mar del Plata, Argentina. They will start by mining Ethereum but plan to expand their operations to other crypto assets.

They have already prepared the space to start the activity. The Neutrón group has given them its support, with an investment of ARS 45 million, equivalent to around USD 310 thousand. They plan to put another ARS 200 million into the project.

Neutrón has been using these financial resources to purchase supplies, assemble equipment, condition the space and electrical infrastructure, and purchase refrigeration equipment, among others.

“That equipment would allow our processing power to be available to companies entering the world of cryptocurrencies. With it, they would be able to make the necessary transactions,” Neutrón CEO Maximiliano González Kunz told the local newspaper La Capital.

The executive added that they are using equipment that they supervise 24 hours a day and have facilities specially adapted for the activity. He explained that they have anti-static floors, a support structure for electronic equipment, electrical installation, and power, refrigeration, and connectivity.

First Cryptocurrency Mining Farm

Lothal Mining facilities are located in the Technological District of Mar del Plata, about 400 kilometers from the Argentine capital. Authorities from the Ministry of Industry, Knowledge- Economy, and External Commercial Management of the Nation recently visited them.

González Kunz considers that the development of this activity will be important for the “ICT ecosystem” of Mar del Plata. They decided to choose this location for the facilities since it is “the city where Neutrón was born and does most of its activities.”

Cryptocurrency mining consists of “validating and grouping the transactions of a network before adding them to its blockchain. At the same time that this process provides security to the network, it allows the generation of new currencies.”

“Cryptocurrencies Will Play a Key Role”

Another of Lothal’s objectives, in addition to mining Ethereum, is to participate “in different ventures related to cryptocurrencies,” said González Kunz. “We want to provide solutions to the cryptocurrency ecosystem and attract people to this environment, through different activities,” he added.

According to the CEO of Neutrón, “physical money will tend to progressively lose ground and cryptocurrencies will play a key role.” For that reason, they plan to educate the public who does not know about this world.

Other Argentine companies related to Bitcoin and other cryptocurrencies, among which is Andromeda, receive the support of Neutrón. They are dedicated to designing, developing, and managing software and hardware, “from incorporating biometric technologies to implementing blockchain initiatives.”

The importance of cryptocurrencies has grown exponentially worldwide, which has become evident in Latin America. Argentina has not escaped this trend, which is why the country is already entering the cryptocurrency mining sector. Likewise, there are financial institutions such as JP Morgan, Citibank, Deutsche Bank, and BBVA, which plan to provide services involving cryptocurrencies.

By Alexander Salazar

Hong Kong Monetary Authority confirmed this alliance for the development of this project. There is a precedent of a similar initiative between Hong Kong and Thailand.

In recent days, the monetary authorities of China, the territory of Hong Kong, the United Arab Emirates, and Thailand reached an agreement. They seek to open the doors to develop a digital currency that multiple Central Banks issue. The objective of this project is to facilitate cross-border payments in the region.

The Hong Kong government confirmed this international alliance. They revealed that the name of the initiative is “Bridge between digital currencies from multiple central banks” (m-CBDC Bridge).

Precedents that they mention in the statement lead to think that it is a common cryptocurrency. However, they do not provide technical details on the development and may be seeking to create a bridge between different central bank digital currencies.

“The m-CBDC Bridge project will explore the capabilities of distributed ledger technology (DLT) by developing a proof-of-concept prototype. This will make it possible to facilitate the real-time crossing of cross-border transactions in a multi-jurisdictional context. That will happen 24 hours a day and 7 days a week,” the Hong Kong authority detailed.

According to the official statement, they hope to be able to use this project to “alleviate the pain points in cross-border transfers.” These problems mainly include “inefficiencies, high costs and complex regulatory compliance.”

One of the precedents of m-CBDC Bridge is the 2019 LionRock project, which sought to facilitate trade between Hong Kong and Thailand. They would do this by developing a token that specifically focuses on cross-border payments between those countries. In the current document, the Hong Kong government recognizes the learning that the “research project” generated.

In the case of the United Arab Emirates, they are also working together with Saudi Arabia to develop a common digital currency. For a year, they conducted Project Aber (“crossing borders” in Arabic) as a pilot study. With it, they sought to test the viability of a common electronic currency between nations. The resulting report indicates that this experience was “a step forward” in the development of this type of financial instrument.

China Wants to Expand the Use of Its Digital Currency

Of the four countries that constitute this international alliance, the most advanced in the development of its digital currency is China. Although the digital yuan (e-Yuan) is still in the testing phase, it may be fully operational next year. At that time, the Winter Olympics will be held in the city of Beijing.

There is a growing interest in using central bank digital currencies in the countries of the region. This aligns with China’s plans to expand the e-Yuan internationally. This became evident after the recent agreement with SWIFT, the administrator of the network that most people use for bank transfers globally.

Concerning Latin America, Brazil is the country that sets the standard for central bank digital currencies. Its Central Bank announced in 2020 that they would study the possibility of issuing their own digital currency.

By Alexander Salazar

JPMorgan members recommend making a 1% investment in Bitcoin to avoid risks. At JPMorgan, they view cryptocurrencies as investment vehicles.

The price of Bitcoin (BTC) has fallen recently, but institutions are maintaining their positive stance towards the pioneering cryptocurrency. JPMorgan strategists have recommended exposing at least 1% of an investment portfolio to Bitcoin for a low-risk profit.

This small capital exposure seeks to mitigate the risks associated with the volatility of the cryptocurrency market. However, such volatility could contribute to profit in this market, according to representatives of JPMorgan.

Strategists Joyce Chang and Amy Ho assured that “investors can add up to 1% of their allocation to cryptocurrencies in a portfolio of multiple assets.” In this way, the latter would make “any efficiency gains in the overall risk-adjusted returns of the portfolio.”

Additionally, Chang and Ho consider cryptocurrencies as “investment vehicles.” For that reason, they said that no one should treat them as “financing currencies”, in contrast to fiat money.

“When looking to hedge a macro event with a currency, we recommend currencies such as the yen or the US dollar,” the strategists added.

Obviously, the recommendation contrasts with those of other institutions, particularly with the strategy that MicroStrategy has taken. The company that Michael Saylor heads has adopted an aggressive way of hoarding Bitcoin. They have made investments of up to USD 1 billion in the most recent round of buying Bitcoin.

Bitcoin as Competition for Gold, according to JPMorgan

JPMorgan strategists have recently made recommendations that align with this institution’s latest approach to Bitcoin.

On other occasions, the organization has shown a very positive attitude towards Bitcoin. In addition to a potential price above USD 146,000, they see Bitcoin as a growing competition for gold as a store of value.

However, this favorable stance towards Bitcoin is relatively recent since JPMorgan used to be highly critical of the cryptocurrency. As has been happening at the institutional level, the firm has changed this narrative.

JPMorgan has come to support exchanges like Gemini and Coinbase for their Bitcoin operations. They have even launched their blockchain with a cryptocurrency that they have already used to finance themselves: JPM Coin.

The JPMorgan’s Zoom Meeting

Large companies have been changing their attitude, seeing valuable financial assets in Bitcoin and cryptocurrencies. Traditional companies such as MicroStrategy and Tesla, as well as large investment firms, are starting to bet millions of US dollars in Bitcoin. In this way, they give the crypto asset greater support and pressure companies to enter the cryptocurrency market.

In a zoom meeting between JPMorgan traders and its Co-President Daniel Pinto, the latter commented that they were open to using cryptocurrencies. However, that will depend on the demand for financial products related to cryptocurrencies from their customers.

Its strategists are recommending their customers to invest in Bitcoin is a sign that the bank is taking its inclusion seriously. Institutional investors have made huge profits from their purchase of the crypto asset. Therefore, investing at least 1% of personal allocation in Bitcoin is an idea that needs consideration.

By Willmen Blanco

Digital currencies can help governments reduce financial fraud. According to Sheila Warren, privacy should become part of the design of digital currencies.

Sheila Warren said that “all countries should consider central bank digital currencies (CBDCs) and that not doing so is a serious mistake.” The Head of Blockchain, Digital Assets, and Data Policy at the World Economic Forum gave that opinion in recent days.

Warren and Cuy Sheffield, head of Visa Crypto, agreed that all central banks in the world should consider CBDCs. They said that, after a timely evaluation, these financial institutions will determine the suitability of the project in their country or region. In the study, the latter will contemplate the cultural, economic, legal, and technical factors involved in the development of their digital national currencies.

Eighty percent of 66 central banks are working on CBDCs, which makes them a reality in the world. Around 40% of these financial entities are already experimenting with the idea and design of their particular projects. The figures indicate that there could be a season of developments in the countries, with China leading the way with its digital yuan. However, Warren and Sheffield do not believe that these projects will establish the foundations of new world order.

Many countries are considering creating their national digital currencies, but 44% of central banks are in the midst of legal uncertainty. That limits their possibilities to issue and handle these types of currencies. For that reason, most of these financial institutions may issue digital currencies in the short and medium-term.

According to Federal Reserve Chairman Jerome Powell, the United States has accelerated its exploration of the possibility of issuing a digital dollar. In this regard, Warren said that an American digital currency can solve two specific problems. She believes that it would help reduce fraud since the money would be easier to track. Besides, it would be possible to monitor it until it reaches the hands of those who should receive it. She also believes that it would be useful for making scheduled payments, which would allow governments to have more control over their spending.

Warren noted that the protection of private data is an element related to the design of each CBDC. She said that it is possible to incorporate a certain amount of privacy into any particular project, depending on the decision of each issuer.

Bitcoin amid Massive CBDC Issuance

Warren and Sheffield also spoke about how the issuance of central bank digital currencies around the world would affect Bitcoin. They clarified that Bitcoin and CBDCs are completely different value proposition.

Regarding Warren, she believes that Bitcoin and CBDCs belong to different ecosystems and have different functions and purposes. She said that central bank digital currencies are worth the equivalent of a nation’s paper money. Therefore, they are subject to the same guarantees from the governments that issue them.

In recent days, the president of the US Federal Reserve raised the possibility that the nation could accelerate the issuance of a digital dollar. Powell believes that congressional approval will be necessary to develop a CBDC. However, he said that “that is not clear until we see in which direction we are going.” However, he is convinced that 2021 will be a relevant year for the advancement of this project.

By Willmen Blanco

They will vote in three ways: online, by e-mail, and in person. Attorney Nobuaki Kobayashi will manage Mt. Gox’s bankrupt real estate funds.

Now-defunct Bitcoin (BTC) exchange Mt. Gox recently released a new refund update for its customers. The document appointed Tokyo attorney Nobuaki Kobayashi to act on behalf of the company. He will have the authority to act as a civil administrative trustee to manage the bankrupt real estate funds of Mt.Gox.

The exchange, whose headquarters was in Shibuya, Japan, has “no reason to disapprove of the draft compensation plan,” according to the Tokyo District Court. This agency approved a payment schedule that includes a creditor voting process on the proposed reimbursement plan.

The trustee will initially determine the voting creditors on March 24^th. They established that the creditors must attend a meeting on October 20^th about the resolution of the compensation plan.

The text indicates three ways that creditors will vote for the draft rehabilitation plan. These modes are online voting, voting by e-mail on a form, and voting in person on the day of the creditor meeting. Creditors will have to choose one of these methods.

The report shows the voting method and the schedule that corresponds to the creditors for the rehabilitation plan. They will publish them on the Mt. Gox website and other media.

Creditors can read in the statement that “there can be no new claims for compensation after the execution of this order.”

When Mt. Gox Stopped Being the Biggest Bitcoin Exchange

Mt. Gox was born in 2010 and went on to become the world’s largest Bitcoin exchange platform. In 2013, it handled 70% of the world’s transactions with the pioneering cryptocurrency. They processed up to 150 thousand BTC per day and had 127 thousand active users.

On May 15^th, 2013, the US Department of Homeland Security (DHS) ordered the confiscation of the exchange’s money. The platform did not have a license from the US Financial Crime Control Network (FinCen) to operate as an intermediary. The DHS seized more than USD 5 million from the platform until July of that year.

The grand theft that Mt. Gox claimed to suffer in 2014 marked the end of the exchange. On February 24^th of that year, the authorities disconnected the website and, the next day, they closed all their operations. The theft of 850 thousand BTC, 7% of the bitcoins in circulation at that time, affected around 24 thousand users.

The victims of Mt.Gox could recover part of the compensation fund of 150,000 BTC before the closing of the court case. This will be possible through the approval of the signing of an agreement between the litigants in this case.

The liquidation of depositors would be easier with the new agreement before the completion of the current legal process. That way, they could have access to partial financial restitution ahead of the scheduled time.

By Willmen Blanco