Canadian Digital Commerce Company Announced Its Incorporation to The Libra Facebook Project

Maria Rodríguez
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Canadian Digital Commerce Company Announced Its Incorporation to The Libra Facebook Project

Shopify will look for ways to create a digital payment infrastructure, specifically aimed at entrepreneurs.

Shopify, the renowned Canadian-based digital commerce company, published a statement on the company’s official blog last Friday, February 21st. That day, it announced its alliance with the Libra Association, the digital asset promoted by the social media giant Facebook. In this way, Shopify becomes the last company to join the stablecoin movement that prepares the social network.

Specifically, a month earlier, Vodafone left the Libra project, arguing that they would be working on their digital payment system. Vodafone recognized that its main objective is to “work collectively” to create an entire network of virtual payments that have no limitations and that can be presented anywhere in the world. Shopify now manages to join the Libra project, even though Vodafone and other service providers have given up their inclusion.

The Libra project was born as an initiative promoted by Facebook. The development was announced last June 2019. With said initiative, they hope to develop a whole system of global payments using a stablecoin supported by a fund in fiat money. In the last movements of the project, it was known that a government board that will have control of the Libra Association was formed. Although Facebook is not among the board of its leadership council, it is Calibra, which is a company linked to the social network giant.

Currently, some important companies are part of the great project that was promoted by Facebook, some of them are: The World Bank for Women, PayU, Uber, Lyft, Kiva, Mercy Corps, Rabbit Capital, Coinbase, Xapo, Anchorage, Bison Trails, Creative Destruction Lab, Andreessen Horowits, Spotify, Union Square Ventures, Ferdetch, Illiad, among others.

At the beginning of this project, companies such as Paypal, Mastercard, Visa, eBay, Stripe, Mercado Pago, and Booking Holdings would have been part of such an association, but most of them left the project, even before the council leading the stablecoin was formed. Vodafone was in the project until last January 2020.

On the other hand, about the inclusion of Shopify in the Libra Association, the company’s blog ensures that its main task is to create a better infrastructure for its customers and to promote them in their projects.

“Our mission has always been to support the business trip of more than one million merchants of our platform. This means dedicating ourselves to have transparent commissions and easy access to capital and ensure the privacy and security of our merchants. We want to create an infrastructure that empowers more entrepreneurs throughout the world”, Shopify said on its official blog.

When exposing certain reasons of its interest in Libra, the statement details that the current infrastructure of the entire world financial system was not designed for the versatility and changes of the needs of the commerce that is generated on the Internet, so this project could assume much of this need that would change everything done in commercial matters.

On the new Shopify alliance, the communications director of the Libra Association, Dante Disparte, mentioned that this addition is a source of pride and that this company will undoubtedly bring wealth to the project.

“As a multinational trading platform with more than one million businesses in approximately 175 countries, Shopify Inc, brings a wealth of knowledge and expertise to the Libra project. Shopify joins an active group of Libra Association members committed to achieving a safe, transparent and friendly implementation with the users of global payment systems, which break the financial barriers that billions of people have”, he concluded.

By María Rodríguez

Central Bank of Ukraine is considered as a “Threat” If It Issues a Cryptocurrency

Maria Rodríguez
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Central Bank of Ukraine is considered as a “Threat” If It Issues a Cryptocurrency

The Central Bank of Ukraine paralyzed the e-Hryvnia project until it determines that issuing a CBDC will not generate instability in the economy.

Last February 21st, the Central Bank of Ukraine presented a conference in Kyiv, where it presented the results of its research on Central Bank Digital Currencies (CBDC). But although the institution stills developing the idea of ​​issuing e-Hryvnia, other entities see this crypto asset as a risk or threat.

Although the bank has joined work teams to investigate and carry out tests that ensure the correct use of cryptocurrencies, the Central Bank of Ukraine stills holding concerns that it considers important for the country’s banking sector. The effect that can generate the Central Bank after issuing a cryptocurrency could be the source of financial instability that can greatly affect Ukrainian private banks, according to representatives of this bank.

Although the control of the issuance of these digital currencies will be in charge of the Central Bank and that for this reason no inflationary problems will be generated, it could represent a serious problem of instability for banks if the population stops using traditional money, the Central Bank of Ukraine explained.

Despite this, the Central Bank said that the cryptocurrencies issued by it have the particularity of increasing public confidence and security in their services. On this factor, the Central Bank of Ukraine published a statement expressing this advantage.

“Unlike bank accounts, Central Bank money is risk-free and 100 % guaranteed by the state. In other words, it is not only convenient but also reliable. Additionally, the digital currency can help reduce the amount of paper money in circulation. For many countries, this is an urgent task, since the underground economy is often fed with paper money”.

E-Hryvnia Project Will Be Paralyzed For Now

Although the aforementioned benefits may be of great importance for the country in the future, the Central Bank is still not sure that it is necessary to continue with the project. So Jacob Smol, who is the governor of the Central Bank of Ukraine, said that the e-Hryvnia project is not a priority and that, when it is determined that it will not be a risk factor for all sectors, its march will continue.

To be more specific, the official used his official Twitter account to make the institution’s decision public. “We have completed the pilot project, but we are still studying the possibility of issuing the e-Hryvnia. We will return to this subject when we are convinced that it is not only technologically feasible but that it will also not interfere with financial and price stability”, Smol said.

The Pilot Plan of E-Hryvnia

According to official data, the Central Bank of Ukraine had been developing the project for the issuance of a CBDC since 2016, but at the end of 2019, the pilot tests of its uses were concluded. The announcement of the end of these tests showed only the issuance of the equivalent of US $ 200. In this way, the Central Bank of Ukraine only issued “a very limited number of e-hryvnias within the pilot, just over 5,000 e-hryvnias, with a total value of $ 200”.

On these results, deputy head of Central Bank of Ukraine’s payment networks and innovative growth department, Olga Vasileva, argued that this cryptocurrency system can be valuable and effective for ordinary citizens, especially since it would completely eliminate the use of cash and would be a quick and cheaper method for common financial operations.

By María Rodríguez

Former Mayor Accused of Money Laundering with Cryptocurrencies

Maria Rodríguez
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Former Mayor Accused of Money Laundering with Cryptocurrencies

The defendant faces a sentence of 40 years in prison for fraud and embezzlement of public funds. If he is found guilty on this occasion, it could be added 3 or 10 years to his sentence.

It was known, through Brazilian media, that the Federal Public Ministry (MPF) of that country accused José Edivan Félix of the crime of money laundering.  Félix is a former mayor who is currently outside the Catingueira Municipality in Brazil for using cryptocurrencies such as Megacoin and Bitcoin for money laundering.

The defendant is currently serving a 40-year prison sentence for embezzlement of public funds and fraud, for about 7.7 million reals, equivalent to approximately 1.75 million dollars.

According to other local media, the authorities introduced a new judicial process that signals the former mayor to have used cryptocurrencies for money laundering on more than one occasion. If the defendant is found guilty, he could face additional fines for each crime and add to his sentence 3 or 10 years in prison.

The data provided by the prosecution that bears the accusation indicates that the citizen Edivan Felix changed the title deeds of some of his assets with the name of other people, hiding properties that were probably acquired with money from money laundering. Besides, it is speculated that the defendant used cryptocurrencies to make the purchase of vehicles through companies that operated as intermediaries.

In two cases that are indicated in the prosecution’s accusation, the citizen Edivan Felix gave as guarantee two cars that would be exchanged for cash. It was speculated that a part of the sale of these goods would be invested in the purchase of the cryptocurrencies mentioned. Prosecutor’s investigations argue that the amount of these operations exceeds 29,000 Brazilian reals, equivalent to USD 6,600.

Local media in Brazil, such as the news media website Paraiba Online, explained that it was all based on a quota sales model that included the use of cryptocurrencies to commit the crime.

“The business model consisted, in summary, of payments made by the participants, who, in addition to paying an initial fee, also paid monthly fees and made withdrawals of dividends in cryptocurrencies”, the local media details.

The accusation against the former mayor of the Catingueira municipality, in the Sertão paraibano, José Edivan Félix, is part of a prosecutor’s plan that seeks to conduct deep investigations related to local mayors for corruption.

Edivan Felix would have already been charged and sentenced last August 2019. During that month, the former mayor was sentenced to 40 years in prison. This is part of the special operation that has been called by the local authorities as “Recidivism” due to the particularity of these cases.

According to an investigation conducted by Messari, the use of Bitcoin to perform money laundering events is still much lower than the use of other global assets. Compared to the US currency, the dollar is used about 800 times more than the cryptocurrency for money laundering.

By María Rodríguez

Non-Consensual Fork of Bitcoin Cash Could Lead to Financial Controversy

Willmen Blanco
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Non-Consensual Fork of Bitcoin Cash Could Lead to Financial Controversy

Bitcoin Cash announced a new version of the protocol that includes developer financing. Users and personalities are against upgrading the protocol and, therefore, a fork.

After weeks of controversy over the measure, users have closed ranks to reject the launch of a new protocol that contemplates its implementation. If this campaign is conducted, Bitcoin Cash (BCH) could be on the verge of forking into two parallel chains that will compete with each other.

Bitcoin Cash confirmed that it will conduct on May 15th a hard fork to upgrade its protocol. The launch of the Bitcoin ABC 0.21.0 client will incorporate the financing fund proposed by pools and miners last January. Despite criticism, Bitcoin Cash developers decided to keep slight modifications in the financing plan.

The insistence of Amaury Séchet and other Bitcoin Cash collaborators in maintaining the financing fund has raised suspicions. Peter Rizun, Chief scientist of Bitcoin Unlimited, denounced in recent days that Séchet incorporated the measure into the protocol to ensure the “creation of coins for him and his friends.”

Currently, Rizun has initiated a campaign against the financing fund. Through several messages on Twitter, the developer has tried to convince users not to upgrade the Bitcoin Cash protocol, recommending that they stay in the old Bitcoin Cash network to bypass the financing fee.

Rizun, who has become a big detractor of the proposal, would suggest conducting a non-consensual fork. In other words, two parallel Bitcoin Cash blockchains can be generated next May that will have to compete to assume the title of the main chain.

Popular Speech

Peter Rizun may promote the fork of Bitcoin Cash due to Amaury Séchet’s resignation from Bitcoin Unlimited. It should be noted that Rizun is cataloged by Gregory Maxwell as being “hypocritical” since his project has also received funding since it emerged. However, Rizun’s fork proposal is popular and it would not be surprising to see it being conducted successfully.

When reviewing the social networks using the keyword “Bitcoin Cash”, it cannot be doubted that the blockchain will suffer a non-consensual fork without consensus next May. Twitter users named the network as “Taxcoin”, ensuring that they will not upgrade the client of their nodes in order not to pay taxes to developers like Amaury Séchet.

In this way, a trend is forming within the Bitcoin Cash community to keep the network on its terms and not subject to the developer’s criteria. In other words, they plan to maintain a blockchain without a financing fund, where 5% of the mining reward and the transaction fees are not charged.

Among the most prominent comments are those by users that saw a new non-consensual Bitcoin Cash fork due to some controversy. This would be the third fork in which the project participates since it separated from Bitcoin in 2017. Just one year after this coordinated division, another dramatic break occurred that generated the Bitcoin ABC projects and Bitcoin SV.

The renowned tweeter and bitcoiner, Hodlonaut, mockingly said that he “was happy” that the BCH community was not part of Bitcoin. The bitcoiner community has also participated in the controversy distributing memes and making jokes about a future fork, an attitude that only raises the tension between contending projects.

 By Willmen Blanco

Next Bitcoin Halving according to Binance CEO, Changpeng Zhao

Willmen Blanco
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Next Bitcoin Halving according to Binance CEO, Changpeng Zhao

Many personalities have already discussed or analyzed the next Bitcoin halving. On this occasion, CZ from Binance gives his opinion on this upcoming event.

It was reported that Binance CEO, Changpeng Zhao, expressed his opinion about the debate over the next reduction by half of Bitcoin. It should be remembered that this event is scheduled for next May 2020.

It can be said that the Bitcoin halving is currently the most anticipated event in the world of cryptocurrencies worldwide. This is due to the impact that the reduction by half had on the price of Bitcoin and other cryptocurrencies in the past.

However, the current debate has been focused since the end of last year on deciphering whether this halving has already affected the market or not. Many cryptocurrency analysts and enthusiasts have given their opinions on this subject.

Some consider that the members of the cryptocurrency community should not expect any significant effect from the next Bitcoin halving. It should be noted that these analysts believe that the first bullish trends experienced by Bitcoin are the only notable impact that it has had. Meanwhile, others think otherwise and the rest remain neutral.

Zhao keeps his analysis open to all possibilities since he refuses to assure anything in such a changing and volatile world as that of Bitcoin and cryptocurrencies in general. Instead, he said that, in his opinion, the halving has not impacted Bitcoin.

A few days ago, the CEO of the largest cryptocurrency exchange by volume of operations, Changpeng Zhao, appeared on BlockTV.

The executive shared his opinion on whether the price of Bitcoin will be reduced by half or not. During the video interview, he noted that it is not customary to give price predictions because most cryptocurrency predictions are eventually wrong.

However, he believes that it is necessary to say that the Bitcoin halving does not have an established price, considering the market situation in the past and the present.

Zhao also stated that it would be necessary to wait for the price to come and go, as Bitcoin to break and maintain prices above the USD 10,000 resistance until after the halving when its price is expected to have a positive impact.

Binance CEO’s opinion is also backed by the CEO of Lolli, Alex Adelman, who considers that the price will jump after the halving, not before. This was specified in a conversation that he had with Julia Chatterley from CNN, stating that the effect on the price cannot yet be determined.

At the time of writing this article, Bitcoin is below USD 10,000, specifically USD 9,688.78, with a bearish change of 0.05% in the last 24 hours.

The price of the main cryptocurrency in the market cannot be accurately predicted, but the behavior it has presented in the past helps users to maintain their confidence in it. On the other hand, its ability to recover from all-time falls means that it remains the best option for investors.

By Willmen Blanco

Former Wall Street Executive Promotes the Creation of the First Cryptobank in the US

Maria Rodríguez
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Former Wall Street Executive Promotes the Creation of the First Cryptobank in the US

Long hopes that the financial institution will be ready for the first months of 2021.

Avanti would be the name of the first cryptobank in the United States of America, the creation of this financial institution is being driven by the initiative of former Wall Street executive Caitlin Long.

The former executive of the Wall Street exchange has made significant advances in legal matters in the State of Wyoming for new technologies, managing to propagate some 13 laws that enable the use of blockchain technology in the state.

The developers of this project seek to make use of the progressive position of Wyoming. In this sense, Long hopes to take advantage of the “legal facilities” to establish the foundation of the country’s first cryptobank.

Intending to publicize this project for the creation of the crypto-financial institution, Long made use of her official Twitter account to publicize this goal and to set her opinion on this idea.

Besides, Long explains that a bank that is regulated by the authorities, allows to be the driver for Federal Reserve payments, and the place of custody for government funds is necessary for the United States market.

“A critical piece of the US market infrastructure is missing, a regulated bank that could serve as a bridge to the US Federal Reserve for handing payments and could provide custody services for big institutional money”.

Hoping to offer services for the digital asset industry and create products that will facilitate the development of operations within the market, Long said they are in the process of making requests to open the doors of the Avanti cryptobank in the first months of 2021.

During this announcement on Twitter, Long thanked Mark Gordon, who is the governor of the state of Wyoming, for being a great help in promoting the creation of this initiative. Avanti will make use of the Special Purpose Depository Institutions Act “which is the optimal structure for compliance with regulations in the US for the provision of financial services around crypto”.

The aforementioned law supposes a high level of regulation, since these legal instrument details that all deposits made in the institution (which in the case of Avanti are cryptoactive) must be fully reserved. Therefore, the institution cannot make any use of these cryptoactives for banking operations. She mentions that they must comply with other regulatory processes, such as the establishment of the “Know Your Client” tool.

Alliances Needed to Boost the Avanti Project

In one of her tweets, Long mentioned that she made great strides to form an alliance with Blockstream and facilitate the necessary infrastructure to operate. The former executive said she even had conversations with Blockstream CEO Adam Back, who concluded that the company would prove to be “an ideal partner to serve large institutional investors that require regulated banks to provide services around bitcoin in USD markets”.

Despite this, Avanti will have a neutral stance regarding market preferences and will adopt all kinds of cryptocurrencies requested by customers.

To conclude, Long said that this important advance will be an incredible attraction for all economic sectors, whether traditional or crypto. If created, the bank could help improve liquidity throughout the traditional and crypto market.

By María Rodríguez

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