The cryptocurrencies burgeoning world is still as volatile as they come. News drives the market as much as supply and demand. This news doesn’t necessarily obey the political status quo as cryptos are by definitions native to the internet, ipso facto stateless. In fact, today’s news comes from places as different as Latin America and Asia Pacific. Let’s dig deeper.
“Petro”, Venezuela’s Oil-Backed Cryptocurrency, Sees Daylight
We have already speculated the end of the Petrodollar era months ago in our blog. However, today has been a remarkable day and a milestone of this crypto-year – political tension just hit the blockchain. In an obvious challenge to the US supremacy when it comes to the Oil Business, Venezuela’s president, Nicolás Maduro, just signed the whitepaper that outlines petro. It’s no other than the oil-backed national cryptocurrency.
As a matter of fact, “petro” is backed by oil reserves to shore up a struggling economy.
He also presented Petro Container, the equipment needed for mining the new currency. I bet our friends in China nodded with approval.
Bitfinex and Tether are Raising Eyebrows in the Cryptocurrency Market
Tether and Bitfinex have been the center of controversy within the crypto-community. The concern is about the accuracy behind assertions that every tether is supported by actual bank reserves.
In January, Tether Limited printed 850 million tethers, or USDT, with no evidence that $850 million is indeed in reserve to back the offering.
Most recently, Tether’s relationship with Friedman LLP has dissolved, increasing concerns about the platform’s transparency. According to Tether, its assets total $2.3 billion with as many tokens trading on exchanges such as Bitfinex and Kraken, which means, ipso facto, they have $2.3 billion in reserve. Did you hear that IRS?
South Korea Won’t Ban Cryptocurrencies Afterall
Great relief for South Korea’s crypto-traders came from the country’s finance minister today. In a response to a question from a lawmaker, Kim Dong-yeon confirmed that officials have no intention to ban or suppress cryptocurrency markets, including ICOs and trading.
It is worth mentioning that the same minister sparked public outrage previously when he implied an official ban. The petition to fire him gathered over 200,000 signatures.
Is Starbucks Preparing to Accept Crypto Payments?
Time for less gruesome news.While, arguably, their Latte and Cappuccino are pretty much the same things, Starbucks is currently developing in other areas – a crypto payment platform. As excitement builds around cryptocurrencies and their underlying technology, blockchain, the coffee giant will supposedly be accepting crypto-payments, according to CEO Schultz. He added that he doubted bitcoin would make the list.
A mixed message, perhaps, but it shows a genuine interest in digital currencies. Another giant step in the road towards crypto mainstream adoption.
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