By Press Trust of India | Updated: 9 June 2022
Chief Economic Advisor V Anantha Nageswaran on Thursday said cryptocurrencies are akin to ‘a world of Carribean pirates’ in the absence of a centralised regulatory authority and is yet to pass the test of a fiat currency.
He said that the government is pursuing a ‘high-wire balancing act’ to ensure that the gains in growth, inflation, rupee stability of the last four years are not frittered away.
He said the recent development in Terra-Luna cryptocurrency, which witnessed a massive meltdown last month, is a ‘very important cautionary tale’.
“I wouldn’t be very excited by them (cryptocurrency) because sometimes we may not be fully aware or comprehend the kind of forces we are unleashing ourselves. So I would be somewhat guarded in my welcome of some of these FinTech-based disruptions like Decentralised Finance (DeFI) and crypto etc,” Nageswaran said.
He further said that unlike fiat money, cryptocurrencies cannot satisfy basic requirements such as having store value, widespread acceptability, and unit of account.
Nageswaran said that he agreed with RBI Deputy Governor T Rabi Sankar who had been saying that as of now there appeared to be a case of ‘regulatory arbitrage’ with regard to cryptocurrencies and decentralised finance rather than a case of true financial innovation.
“The more decentralised they become and the absence of a watchdog or a centralised regulatory authority also means that there is a world of Carribean pirates or a world of ‘winner take all’ in terms of being able to really taking it all from somebody else,” he noted.
The government is working on a consultation paper on cryptocurrencies and is taking inputs from various stakeholders and institutions, including World Bank and IMF.
The Reserve Bank, which is planning to launch its own central bank digital currency, has on many occasions expressed its reservation over private cryptocurrencies, citing concerns over macroeconomic stability.
Speaking on the economy, Nageswaran said the government is pursuing a high-wire balancing act with respect to the four variables – fiscal deficit, economic growth, keeping the cost of living lower for poor and low-income households, and ensuring the value of the rupee doesn’t weaken so much that it becomes a source of inflation by imports.
“The government is aware that the hard-earned gains of last four years in terms of macroeconomic and financial stability cannot be frittered away…,” he said, adding, in many countries the intensity and magnitude of challenge is much higher.
“… we should be relatively happier, relatively comfortable that considering the challenges that many countries are facing, we are relatively better placed to deal with them but we are aware of the challenges and the responsibilities,” Nageswaran said referring to OECD’s global growth outlook.
The Organisation for Economic Cooperation and Development (OECD) on Wednesday sharply cut India’s growth forecast to 6.9 percent in current fiscal, from 8.1 percent estimated earlier.
This is below the 7.2 percent growth projected by RBI.
Earlier this week, the World Bank too slashed India growth projections to 7.5 percent, from 8.5 percent, for this fiscal.
Bitcoin falls below $19,000 as cryptos creak under rate hike risk
By: Reuters, Updated September 19, 2022
SINGAPORE, Sept 19 (Reuters) – Cryptocurrencies fell to fresh lows on Monday on regulatory concerns and as investors globally turned shy on risky assets with interest rate rises looming around the world.
Bitcoin , the biggest cryptocurrency by market value, fell about 5% to a three-month low of $18,387.
Ether , the second largest cryptocurrency, dropped 3% to a two-month low of $1,285 and is down more than 10% in the last 24 hours. Most other smaller tokens were deeper in the red.
The Ethereum blockchain, which underpins the ether token, had a major upgrade over the weekend called the Merge that changes the way transactions are processed and cuts energy use.
The token’s value has fallen amid some speculation that remarks last week from U.S. Securities and Exchange Commission Chairman Gary Gensler implied the new structure could attract extra regulation. Trades around the upgrade also were unwound.
“It’s speculation as to what might or might not happen,” said Matthew Dibb, COO of Singapore crypto platform Stack Funds, on the regulatory outlook.
“A lot of the hype has come out of the markets since the Merge,” he said. “It’s really been a sell-the-news type of event,” he added, given the nervous global backdrop, and said ether could test $950 in coming months.
“Looking at the landscape right now, both fundamentally and technically, it’s not looking great. There’s no immediate bullish catalyst that we can see that’s going to prop up these markets and bring in a whole lot of new money and liquidity.”
Bitcoin once again slips below $20,000
By: Reuters, September 18, 2022
Sept 18 (Reuters) – Bitcoin on Sunday dropped 1.54% to $19,804, slipping from the 20,000 mark after losing $310 from its previous close.
The world’s biggest and best-known cryptocurrency is down 58.9% from the year’s high of $48,234 on March 28.
Ether , the coin linked to the ethereum blockchain network, dropped 3.2 % to $1,422.1 on Sunday, losing $47 from its previous close.
U.S. seizes $30 mln in crypto from North Korea-linked hackers
By: Reuters, September 9, 2022
Sept 8 (Reuters) – The United States has seized over $30 million in cryptocurrency stolen by North Korean-linked hackers Lazarus from the popular online game Axie Infinity, crypto intelligence firm Chainalysis said on Thursday.
The company said in a blog post it played a role in the recovery with U.S. law enforcement and other crypto organizations, without naming them, in the first ever recovery of stolen cryptocurrency by a North Korea hacking group.
Chainalysis and North Korea’s mission to the United Nations did not immediately respond to requests for comment. The FBI did not immediately respond to a request for comment.
The seizures represent about 10% of the total funds stolen in March from Ronin Network, a sidechain built for the play-to-earn game Axie Infinity, Chainalysis said.
Ronin said in March hackers stole about $615 million in cryptocurrency.
“We estimate that so far in 2022, North Korea-linked groups have stolen approximately $1 billion of cryptocurrency from DeFi protocols,” Chainalysis said. He was referring to decentralized finance protocols, an umbrella term for financial services offered on public blockchains.
The U.S Department of Treasury in May sanctioned virtual currency mixer Blender, saying it was used in the laundering process for the Axie Infinity heist.
The Treasury Department in April also linked Lazarus to the attack.
Crypto gaming firm Animoca Brands raises $110 million
By: Reuters, September 8, 2022
LONDON, Sept 8 (Reuters) – Hong Kong-based blockchain gaming developer Animoca Brands has raised $110 million from investors, the company said in a statement on Thursday.
The company said the fund raising values the company “similar to its previous funding round” but did not specify its new valuation.
In July, Animoca said it had a valuation of around $5.5 billion. read more
(This story corrects paragraph 1 to read Hong Kong-based not Singapore)
Binance to convert users’ USDC into its own stablecoin
By: Reuters, September 6, 2022
Sept 5 (Reuters) – Binance, the world’s largest crypto exchange, said on Monday it is introducing “BUSD Auto-Conversion,” which will be used to convert any existing user balances and new deposits of USD Coin (USDC), Pax Dollar (USDP) and True USD (TUSD) into its own stablecoin.
The move is intended to enhance liquidity and capital efficiency for users, the company said in a statement.
Binance said it will remove and cease any trading on spot pairs that include USDC, USDP and TUSD; it will start the conversion on Sept. 29.
USDC, which is principally operated by Circle Internet Financial and is the second largest stablecoin, has a nearly $51.9 billion market capitalization. Binance’s stablecoin, BUSD, is valued at about $19.4 billion, according to crypto data provider CoinGecko.
USDC products affected include saving accounts, DeFi staking subscriptions and crypto loans, which will be closed and liquidated on Sept. 23.
Crypto Exchange FTX Ordered to Halt ‘False and Misleading’ Claims by US Bank Regulator
By Reuters | Updated: 20 August 2022
A US bank regulator ordered crypto exchange FTX on Friday to halt what it called “false and misleading” claims the exchange had made about whether funds at the company are insured by the government. The Federal Deposit Insurance Corporation said a July tweet by Brett Harrison, head of FTX’s US operations, contained misleading claims that funds held at and stocks purchased through FTX were FDIC insured, and ordered the company to remove any misleading language from its social media accounts and websites.
In the tweet, which Harrison has since deleted, he stated that direct deposits from employers to the crypto exchange are “stored in individually FDIC-insured bank accounts” and that stocks purchased via FTX US “are held in FDIC-insured” brokerage accounts. The FDIC said in its cease and desist letter to FTX US that those statements implied that FDIC insurance was available for cryptocurrency and stock holdings, and that the agency does not insure brokerage accounts.
The order, one of five sent to crypto firms by the FDIC on Friday, comes as regulators have ramped up efforts to police crypto firms that may be misleading investors on whether their funds enjoy a government backstop. The issue has come to a head of late, as turmoil in the crypto market has led to stress and the collapse of some high profile firms.
The bank regulator issued a similar cease and desist letter to bankrupt crypto firm Voyager Digital, arguing that the company had misled customers by claiming their funds with Voyager would be covered by the FDIC. Later, the FDIC issued an advisory urging banks dealing with crypto companies to ensure that customers are aware of what types of assets are government-insured, particularly in cases where firms offer a mix of uninsured crypto products alongside insured bank deposit products.
© Thomson Reuters 2022
In a tweet on Friday, FTX CEO Sam Bankman-Fried emphasised FTX is not FDIC-insured, and apologised if anyone misinterpreted previous comments.
5G Services Rollout Expected ‘Very Soon’, Aiming for Pan-India Coverage in 2 years, IT Minister Says
Intel Said to Select Veneto as Preferred Site for Multibillion-Euro Chip Plant in Italy: All Details
Elon Musk to Activate Starlink After US Guidance on Expanding Internet Access to Iranians Amid Protests
Hyundai Partners With Tata Power to Set Up Electric Vehicle Charging Infrastructure
India Is Planning to Roll Out 6G Telecom Network by Decade End, 5G to Launch in Few Months: Prime Minister Modi
India’s 5G Testbed Successfully Tested in IIT Madras, Union Minister Ashwini Vaishnaw Made First 5G Call
Internet2 weeks ago
Taiwan president warns of ‘volatile’ challenges facing chip industry
Games1 week ago
Microsoft’s $69 billion Activision deal in UK’s crosshairs
Cryptocurrency3 weeks ago
Crypto gaming firm Animoca Brands raises $110 million
Games1 week ago
Take-Two’s Grand Theft Auto VI gameplay leaked online – Bloomberg News
Apps3 weeks ago
India’s Matrimony.com launches app catering to LGBTQIA+ community
Internet3 weeks ago
Intel says it has no current plans to start manufacturing in India
Internet2 weeks ago
U.S. Senate panel delays vote on bill allowing news outlets to negotiate jointly with Big Tech
Mobiles3 weeks ago
Apple to appeal Brazil sales ban of iPhone without charger