US May Bar Large Tech Firms From Issuing Cryptocurrencies

Lawmakers in the U.S. are discussing a bill that seeks to prevent large technology institutions in the country from issuing cryptocurrencies.
Source: cryptscout
US May Bar Large Tech Firms From Issuing Cryptocurrencies

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Bitcoin’s Price May Rise after Congress Hearings on Facebook’s Libra Сryptocurrency

Coinspeaker
Bitcoin’s Price May Rise after Congress Hearings on Facebook’s Libra Сryptocurrency

David Marcus, the head of the department managing Libra project at Facebook, will soon have to testify to the Senate Banking Committee and the House Financial Services Committee of the United States. The hearings are scheduled for July 16 and July 17 correspondingly.

Ahead of the session, Bitcoin showed a $3,000 value drop in as little as five days, and currently, it is trading at a below $10,000.

The Facebook cryptocurrency Libra, anticipated in early 2020, already demonstrated a correlative effect over the price of . The evidence came when BTC jumped to the mark of $13,800 from $9,000 in a bit more than a week after Facebook’s disclosure of Libra White Paper on June 18. According to recent projections, Libra boost the chances of Bitcoin hitting the threshold of $100,000 by 2021.

In the past, Bitcoin already proved to be vulnerable to Congress decisions. The biggest recorded change occurred in early 2018 when BTC lost its value from $12,000 to $6,000 in just 10 days following congressional hearing led by the Senate Banking Committee. The good news is, Bitcoin rose from the ashes and normalized to the level above $11,700 as a result of a positive outcome. The story can repeat if Libra officially gets green light from the government.

Libra’s reception

From the very first days, Libra has been fuelling fervent discussions as of its odds to be unveiled to the world. Even now, the future of Libra does not seem to be cloudless on both sides of the Atlantic Ocean.

In Europe, Libra did not get a warm reception from the European Central Bank (ECB), whose executive board member Benoit Coeure called upon the regulators to take actions. As he explained further, an active response has to be adopted to combat the potential risk streaming from Facebook’s project. What is more, the UK is not particularly fond of Libra either. The country’s Central Bank looks into the possibility with caution and does not rush to grant it an approval.

The situation gets even more complicated in the US. In a recent tweet, Donald Trump expressed harsh criticism of Libra and cryptocurrency in general:

Further, the Federal Reserve (Fed) chairman Jerome Powell openly declared that the Libra project cannot move forward unless all of the serious concerns coming with it are resolved. In the same way as ECB, Fed is also cautious and worries about Libra’s resulting effect on the soundness of the existing financial system. It only remains to be seen what effect it will produce over the decision of Congress.

Bitcoin’s Price May Rise after Congress Hearings on Facebook’s Libra Сryptocurrency


Source: coinspeaker
Bitcoin’s Price May Rise after Congress Hearings on Facebook’s Libra Сryptocurrency

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Analyst Considers It May Be Difficult To See Bitcoin Under $10,000 Again

As (BTC) fell under $10,000 in the last hours for a short period of time, the cryptocurrency trader an investor Josh Rager, considered that a four-digit […]

The post Analyst Considers It May Be Difficult To See Bitcoin Under $10,000 Again appeared first on UseTheBitcoin.


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US May Bar Large Tech Firms From Issuing Cryptocurrencies

Lawmakers in the U.S. are discussing a bill that seeks to prevent large technology institutions in the country from issuing cryptocurrencies.

According to a report from Reuters on Monday and a copy of the draft bill circulating online, policymakers in the U.S. House of Representatives are looking to step up the scrutiny over big tech firms that are interested in cryptocurrencies.

Under the section of “Prohibition related to cryptocurrencies,” the draft bill, called “Keep Big Tech Out Of Finance Act,” states:

“A large platform utility not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System.”

The bill specifically defines a digital asset as “an asset that is issued and transferred using distributed ledger or blockchain technology, including, so-called ‘virtual currencies,’ ‘coins,’ and ‘tokens.’”

It further clarifies any large tech firm with over $25 billion in global annual revenue could fall into this category and any violation of the proposed regulation should be subject to a fine of “not more than $1 million per each day of such violation.”

While the bill is still in a discussion draft form and not yet formally submitted, the news comes just weeks after Facebook announced a plan to issue the Libra cryptocurrency on a blockchain. The firm booked $55 billion in its global revenue for 2018.

Worldwide regulators have since then voiced concerns on how Facebook’s plan can remain compliant with central banking regulations across the globe.

Last week, the U.S. president Donald Trump made his first comments on cryptocurrencies via a series of tweets, in which he criticized Facebook’s Libra project had “little standing or dependability.”

Libra image via Shutterstock

US May Bar Large Tech Firms From Issuing Cryptocurrencies


Source: cryptoassethome
US May Bar Large Tech Firms From Issuing Cryptocurrencies

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US May Bar Large Tech Firms From Issuing Cryptocurrencies

Lawmakers in the U.S. are discussing a bill that seeks to prevent large technology institutions in the country from issuing cryptocurrencies.
Source: worldnewsoffice
US May Bar Large Tech Firms From Issuing Cryptocurrencies

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US May Bar Large Tech Firms From Issuing Cryptocurrencies

Lawmakers in the U.S. are discussing a bill that seeks to prevent large technology institutions in the country from issuing cryptocurrencies.
Source: coindesk
US May Bar Large Tech Firms From Issuing Cryptocurrencies

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Japan may welcome more than 100 cryptocurrency exchanges soon. There are 110 pending applications for such crypto exchanges awaiting approval.

Japan may welcome more than 100 cryptocurrency exchanges soon. There are 110 pending applications for such crypto exchanges awaiting approval. submitted by /u/crypto_trading_stats
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Japan may welcome more than 100 cryptocurrency exchanges soon. There are 110 pending applications for such crypto exchanges awaiting approval.

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Gold Stocks May Have Room To Run With Spot Prices At 5-Year Highs

prices have reached their highest level in five years, triggering a newfound excitement in the yellow metal, so what does that mean for ? One firm suggests stocks not yet be pricing in the higher spot for gold, so more upside could be just around the corner. Stevebidmead / Pixabay […]
Source: bitcoinwarrior
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Bitcoin Mining May Prove Useful for Gas Well Owners

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Source: CryptoCurrency
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Bitcoin Mining May Come Back to Iran — If Officials Can Agree

Iran could allow again, but it looks like miners will have to start paying full for their energy.

State-financed news source PressTV this week reported that the governor of the Central Bank of Iran (CBI), Abdol Nasser Hemmati, announced that the Iranian government is moving to authorize bitcoin mining. Following turbulent weeks in which Iranian mining operations had their power cut off and in some instances even their hardware seized, this is another sign that mining be allowed again — though it was never actually officially banned.

Indeed, while apparently positive news for Iranian bitcoin miners, recent comments from Iranian officials — as reported by Iranian (usually government-financed) press — in some cases appear uncoordinated, with different government bodies making contradictory statements and taking inconsistent action.

Bitcoin Mining in Iran

Electricity, mostly produced from natural gas, is relatively cheap in Iran. Households pay the equivalent of around $0.03 to $0.05 per kilowatt hour (kWh). (For comparison, in most western countries 1 kWh costs at least $0.10, and often significantly more than $0.20.) On top of that, industrial use of energy is annually subsidized for $1 billion by the Iranian government. And since it is priced in the Iranian rial, which fell sharply against USD, one government-subsidized kWh today costs less than $0.01.

Bitcoin and cryptocurrency mining is an energy-intensive process, and usually most profitable where energy prices are the lowest. Unsurprisingly, therefore, a growing number of bitcoin and cryptocurrency miners have been finding a new home in Iran over the past year, occupying locations with subsidized energy, such as abandoned factories, agricultural sites, government offices and mosques. This includes Chinese miners, who are increasingly shunned from mining in their own country, as well as miners from Europe and Iran itself.

By late June, Iranian news reports claimed that bitcoin mining had become so popular that it had a noticeable impact on the nation’s energy grid. Between May 22 and June 21, 2019, national energy consumption had increased by 7 percent compared to similar periods in previous years, according to Ministry of Energy spokesman Mostafa Rajabi Mashhadi. Speaking with Iranian press agency IRNA, Mashhadi stated that “a bulk of that unusual increase is because of the activity of bitcoin miners.”

Not everyone in Iran is happy about the up-and-coming mining industry, however. Deputy Energy Minister Homayoun Haeri had, in early June, told IRNA that cryptocurrency miners should not be eligible for the subsidized energy and should instead pay export prices for their power, according to English language Iranian news source Financial Tribune. At about $0.07 to $0.10 per kWh, this would be much more expensive than the subsidized industry rate.

More recently, according to a separate report by PressTV, Mashhadi even said the ministry considered the industrial mining operations harmful and had started tracking down some of them. The spokesman went so far as to suggest that prosecutions would follow.

“The high consumption by cryptocurrency miners has led to some electricity supply instability and even damage to other electricity users,” Mashhadi said. “If the trend continues, those subscribers who are found to be making unauthorized electricity use will face legal action.”

While there are no confirmed cases where the government took legal action, officials indeed did move to stop bitcoin miners: Several Iranian mining operations had their power cut off. Additionally, Reuters reported that, in at least one facility, Iranian authorities confiscated the specialized mining hardware required to mine bitcoin. The days of large-scale bitcoin mining in Iran seemed over.

Trend Reversal?

The Iranian government appears somewhat divided on the topic, however, with some state agencies seeming to favor a more welcoming policy toward the miners.

PressTV itself made sure to note that Bitcoin could help Iran in the geopolitical sphere, writing that “an awful lot of the U.S. power comes from the dollar being used as the standard unit of international finance and transactions. The use of bitcoin is eating at that advantage and effectively disempowering the United States.”

“For countries like Iran […] virtual and digital currencies provide a back-channel to bypass U.S. sanctions.”

Several departments of the Iranian government also seem open to Bitcoin. Saeed Zarandi, the deputy minister for industry, mining and trade, took a much more balanced approach than the Ministry of Energy, stating that several government committees were examining the issue.

“With regard to bitcoin, we have to investigate its threats and opportunities and ultimately make an appropriate decision by taking these issues into account,” Zarandi told Iranian news agency Tasnim, PressTV reported.

According to Zarandi, a number of ministries, as well as the central bank, have yet to make their decision on the legality of cryptocurrency mining and what status it should have for energy consumption.

“If we decide to view this as a productive work, we need to define its framework and come up with a supervisory mechanism,” he said, “but the important thing is that this activity has not been defined yet a productive work.”

How It Could Work

Mohammad Javad Azari Jahromi, Iran’s minister for communication and information technology, went a step further. He told PressTV that he believes the government should authorize cryptocurrency mining. Specifically, Jahromi argued that miners could make use of Iranian electricity in off-peak hours, when it is unused by the local population and industry. This would create wealth in the country, he argued; using the abundant energy for cryptocurrency mining would be more profitable than exporting it.

And finally, just a few days ago, the governor of the Iranian central bank announced that the government has approved plans which would allow bitcoin mining. However, according to Hemmati, this would come under two conditions: One, “Mining of the international digital currencies should be done based on the price of electricity for export,” and two, “These mined currencies should be fed back to the national economic cycle.”

Of course, at export energy prices, it’s less obvious that bitcoin mining will be a profitable endeavor in Iran — but at least it would be allowed.

The post Bitcoin Mining May Come Back to Iran — If Officials Can Agree appeared first on Bitcoin Magazine.


Source: bitcoinmagazine
Bitcoin Mining May Come Back to Iran — If Officials Can Agree

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