Salvadorans Choose to Use the Dollar Instead of Bitcoin as a Form of Payment

More than half of the respondents know about bitcoin but do not back up its use as a payment method. The Salvadoran people have little knowledge about how digital assets work.

The Francisco Gavidia University (UFG), a private university based in San Salvador, led a survey to determine what the citizens of that nation think about bitcoin as a form of payment. The results presented that, out of ten Salvadorans, six are against the move of the Nayib Bukele’sBukele’s administration to accept bitcoin as a second national asset.

The survey got held between May 11 and 15, 2021, through house-to-house visits. Of the 1,306 Salvadorans surveyed by the university, 62.3% had shown disagreement with the use of bitcoin as a second asset in El Salvador. In contrast, 23.7% of those surveyed support the decision, and 11.2% still doubt whether it was a correct move.

The Salvadoran study house revealed the results this May 25 through the official account of Disruptiva, a publication of the Institute of Science, Technology, and Innovation of the university.

Among the questions addressed in the survey is the one that investigates which representation is closest to the concept of bitcoin for the respondents. 73.50% see it as a virtual asset. Another question asked if they would be willing to receive their salary based on bitcoin, and 64.8% expressed their disagreement.

Knowledge about Bitcoin Depends on Educational Level

The report presents that the responses of the Salvadoran people are highly attached to the age. Under this situation, most people over 65 tend to believe that bitcoin is a “metal currency,” claiming “they don’t know what it is.”

While people ranking between 30 and 39 years old get divided between defining it as a “metallic currency” or “virtual currency,” people between 18 and 29 years old are the ones who best identified it, pointing it out as a “virtual currency.” On the other hand, citizens between 40 and 55 are moderately between “metallic currency” and virtual currency.”

The report highlights that education has heavily influenced people’s thoughts about cryptocurrencies, especially bitcoin.

In the case of the question, “do you consider the administration’s proposal to establish bitcoin as legal tender correct?” Those who described it as a wise decision were primarily citizens with a university education.

On the other hand, people with high school studies thought it was an unwise decision, and those with only a primary or third cycle education said it didn’t get accepted at all.

By. Jenson Nuñez

Binance Would Support Twitter in Conducted a Crossover to the Web

CZ highlights that brand new technologies would help a platform such as Twitter move to web3. Binance supported with USD 500 million to definitively purchase Twitter in joined efforts with Elon Musk.

The creator and CEO of Binance, a bitcoin and other cryptocurrency exchange, Changpeng Zhao (CZ), opened up about his desire to migrate Twitter from web2 to web3, reaching new levels regarding blockchain upgrades and cryptography.

This statement arrived during a conversation hosted by CoinMarketCap, one of the most prominent market price indicators. In his participation, the manager reflected on Twitter, an entity for which he will help with USD 500 million to achieve its acquisition by Elon Musk. He described it as a strategic investment for the company he leads.

According to CZ, new technologies can help accept payments in digital assets through a space where cryptography helps support specific interactions between those who play their part in the network.

Web 3.0, also called web3, updates the current global Web; it means that it feeds with improvements to the next generation of the Internet. There, the use of decentralized blockchains might become a usual activity, on which, among other things, virtual spaces with economic archetypes focused on digital assets or the well-known metaverses can get crafted.

Musk Talks about Freedom

Like Musk, who brought more than $44 billion to acquire Twitter, Zhao emphasizes freedom of expression as one of the reasons to take control of the company. Liberty was one of the consigns of the CEO of Tesla and SpaceX in his efforts to acquire the entity headquartered in San Francisco, California.

Musk used the censorship that harmed Twitter as a reason to buy the entity and highlighted the need to turn it into a private entity as a way to consolidate freedom in all its shapes.

Shortly after, Binance publicly announced their desire to help with USD 500 million to Elon Musk’s offer for the purchase of Twitter. That amount of money is part of a fund registered at more than USD 7 billion, and a dozen participants got present to join the cause.

Elon Musk is not alone in his efforts to execute the purchase of Twitter. And among those joining him is the most prominent bitcoin exchange worldwide: Binance.

The exchange revealed a contribution of 500 million dollars to purchase the social network from the businessman. That sum of money is part of a fund of some 7,139 million that had the commitments of more than a dozen participants, as shown by the documents revealed by Musk in front of the United States Securities and Exchange Commission.

Although the negotiation plan got obstructed until the total number of false accounts operating on Twitter came to the public, the millionaire still could acquire the entity created by Jack Dorsey more than a decade ago in what could be a 180° change in the way the company behaves.

By: Jenson Nuñez.

The Price of the Ethereum Cryptocurrency Plummets Following Issues with the Beacon Testnet

The short-term outlook does not look very encouraging for ETH, as there are still no signs to confirm it has bottomed out. It could be a good sign that the price has quickly overcome the selling pressure, considering it is above a relevant support zone.

Some problems with the Beacon Chain, an Ethereum testnet, recently led the price of ETH to drop by almost 12%. That situation adds to the collapse of LUNA and UST, causing further fear in the crypto market.

ETH is trading at around USD 1,749 and has accumulated a 13.6% loss over the last week. While its trading volume is above USD 23.47 billion, its market capitalization is about USD 212.01 billion, according to CoinGecko.

The Beacon Chain is an online testnet that may allow giving way to a proof-of-stake (PoS) validated mainnet. The developers of Ethereum believe that it is a more efficient and scalable protocol.

The abovementioned Ethereum testnet, which will introduce the new transaction validation model, recently underwent an in-depth reorganization of 7 blocks. Since such changes usually occur when detecting malicious activity or network error, fear arose among investors.

The news about the issue with the Beacon Chain made the market react with negativity. There is a sharp increase in open interest in ETH futures positions, which might soon boost volatility.

Weekly Technical Analysis of the Price of Ether

According to the weekly ETH/USDT chart, there has been bearish behavior. For that reason, the recent drop in the price of Ether did not impact that outlook much.

The price remains above a relevant monthly support zone of around USD 2,000. At that level, there will possibly be at least a bullish respite.

The price quickly rejected the low it had reached at USD 1,735, thus fueling the possibility of a rally.

The current scenario does not look very encouraging for the Ethereum cryptocurrency in the short term. There are still no signs that confirm that the bearish cycle has bottomed out. If the selling pressure increases, the price might head for the next significant demand zone around USD 1,300.

However, the overall picture of the market suggests that the price of ETH could be about to bottom out. It is reaching very significant support levels and rapidly overcomes the bearish trend.

Daily Analysis of the Price of Ether

The daily ETH/USDT chart shows that Ether has quickly overcome much of the recent selling pressure. That could be a good sign, considering that the price is above a relevant support zone.

ETH has remained locked in a small descending channel, while the Relative Strength Index (RSI) registers increasingly high lows. That force divergence is a sign of a possible setback in the price in the short term.

A rebound from the current price should be large enough to confirm the resumption of the bullish trend. A respite may only be a reversal before continuing the search for the bottom.

By Alexander Salazar

Binance Alerted Kazakhstan on the Development of Regulations for Bitcoin

Binance arranges a regional blockchain center for Kazakhstan. The entity brought forward a blockchain-oriented venture capital fund.

Binance is one of the most prominent Bitcoin and digital assets exchanges worldwide and is also willing to encourage and develop regulations with nations that require it. This resolution arrived after facing many run-ins with regulators in many countries some years before.

In this sense, the company managed by Changpeng Zhao highlighted that it would contribute to the officials of Kazakhstan for the development of the legislative framework and the regulatory policy for crypto assets in that territory.

On this occasion, the exchange publicly revealed its contribution to setting up policies that regulate the crypto space. Although Changpeng has met before with leaders and government representatives from other nations, it had not transpired if the dialogue included any advisory agreement on regulative policies.

In addition to advice, the exchange will also intend to find new paths to merge with the banking system within the Kazakhstan crypto market and make the development and implementation of distributed ledger technology easier, according to a statement made by Binance.

Zhao held a meeting with many ministers and the president of Kazakhstan himself, Kassym-Jomart Tokayev. He explained that the increasing acceptance rate regarding digital assets worldwide would have a social impact on society, which is one of his most wanted goals.

Bitcoin Mining in Kazakhstan Attracted Binance

Since China started against Bitcoin mining, many companies forced themselves to close and abandon the region to find new places to carry out that financial activity, moving to other nations like Kazakhstan.

In that territory of Central Asia, the entities got received with warmth. In fact, in 2021, Kazakhstan became the second nation with the most prominent mining activity, with 18% of computing power behind the United States of America.

However, Kazakhstan went through some troubles regarding bitcoin mining earlier this year; the flaws got related to power supply flaws and political uncertainty, putting the industry’s future at risk.

The serious struggles in Kazakhstan made many mining operators consider leaving the nation and migrating to destinations such as Russia or US.

Despite this, Bitcoin mining is still a constant activity within the country but with more essential rules. Earlier this month, Kazakhstan’s digital development minister, Baghdad Musin, filed an order expanding the registration and reporting requirements that miners of Bitcoin must submit to regulators.

Binance Works with Regulators

Given this scenario, Binance probably observed the possibility of encouraging the industry in Kazakhstan, which would include the creation of regulatory frameworks attached to that sector. It is not surprising that the exchange bends to the legislation after it went through the restriction on its operations in many regions.

The most recent achievement for Binance was when France allowed it to carry out its activities within its jurisdiction and became the first central platform to get licensed as a digital asset service provider in that European nation.

By: Jenson Nuñez

According to SEC Commissioner Hester Peirce, Regulation for Stable Coins will Come Sooner than Expected

According to Peirce, what happened with the Terra coins represents the urge for stronger regulation aimed at stable coins. Still, there is also a need to guarantee an equilibrium that allows more improvements and compliance with essential policies.

The US Securities and Exchange Commission commissioner, popularly known as Crypto Mom, Hester Peirce, recently highlighted that regulation on stable coins could arrive sooner than expected, mainly due to the recent Crashdown in prices.

A Regulation for Stable Coins Would Arrive Soon

This event got revealed by Peirce during an interview held by the CNBC network, where the commissioner highlighted that the Crashdown of UST and LUNA represents the urgent need for a solid regulation on stable coins. She expects that this regulative procedure will not be harmful to the development of the crypto space in the short term.

As a representative of the SEC, Peirce has always warned participants in the crypto ecosystem to carry out their activities with great prudence. Given the impact that DeFi protocols caused at the time, the official alerted entities interested in releasing new proposals under this model to look for assistance from the regulator to become aware of the current situation and clarify whether said currencies comply with the definition of values.

A supportive Stance from Congress

Although the SEC and the Commodity Futures Trading Commission (CFTC) have the responsibility to serve as third parties in these situations, the representative said that Congress should play a more active role. Congress must bring enough light to said entities and allow them to carry out their actions in the most appropriate way possible.

Pierce commented in the interview that the SEC is already working hard and using the authority it has, but she thinks it would be better if Congress entered the fight and helped a bit more.

The Perfect Balance Between Improvements and Regulative Protocols

Finally, Peirce asked for a more balanced behavior in the regulations that might come soon since a balance must be the factor that allows improvements in a financial environment and guarantees compliance with specific policies for all the affected.

To achieve this goal, she explained that it is vital that both parties meet and communicate in good faith, which unfortunately has not been achieved precisely because of the predisposition of regulators regarding digital assets and the crypto space.

By: Jenson Nuñez

The President of the European Securities Regulator Indicated that High Inflation Could Increase Investments in Bitcoin

According to Ross, the inflationary stages and high yields that could arrive from the rise of Bitcoin increase the interest for the asset as an investment asset among investors. Therefore, it needs to be greater unity in regulatory procedures to address digital assets.

Verana Ross, the actual President of the European Securities and Markets Authority, assured that the current economic panorama, in parallel with financial precariousness and high inflation stages, could help citizens invest more funds in Bitcoin.

Interest in Bitcoin is Increasing among Investors

Ross’s statements arrived during an interview. She explained that in the current panorama, the European Union (EU) must sharpen its regulatory perspective and adjust to the requirements of those interested in Bitcoin and the most prominent digital assets.

The official also expressed that besides playing the role of haven assets, people would also get interested in the high returns that digital currencies can offer during hard times, which makes Bitcoin and other exponents quite attractive as investment currencies.

The representative said that with inflation reaching high peaks, investors would seek investments that can try to offset these figures and leave higher returns, leading to more risk-taking.

A Unified Approach is the Main Requirement

Given the variety of approaches on the table, Ross expressed the urge for a more unified perspective on crypto regulations in European territory, which depends strongly on national policies and causes an imbalance between the approaches led by regulators.

Portugal is a country whose Legislative Assembly already rejected the proposal launched to tax commercial activities with digital assets between users. This complex procedure, if approved, would impose the payment of taxes from the purchase/sale of the equivalent of EUR 5,000 in digital assets.

As such, in Portugal, the entities that allow the trading of digital assets must comply with the corresponding taxations, but since these assets get labeled as currencies, users must not assume the payment of this kind of tax for trading or carrying out other financial activities with said currencies.

The warning advice made by Ross goes in parallel with the announcements made by the President of the Central Bank of Europe, Christine Lagarde, who has repeatedly asked for stronger regulation of digital assets and their speculative features.

Highly Volatile Market

Ross’s opinion arrived in a moment filled with certain unpredictability within the market since Bitcoin, and the most prominent exponents of the sector have been decaying for several weeks after the crash of the Terra ecosystem at a rate of what happened with the LUNA token and the UST stablecoin.

Some users got inclined to think that this situation could represent the best chance to invest in assets like Bitcoin cheaply. In contrast, others are more pessimistic and foresee the possibility of a much deeper crash soon.

Users have to wait for how the market evolves and overcomes this situation, especially given the regulatory focus that many agencies are taking regarding the subject.

By: Jenson Nuñez