El Salvador creates a framework for Bitcoin bonds
El Salvador was the first state in the world to declare Bitcoin its national currency in 2021. But that’s not all, because next, President Nayib Bukele is planning the introduction of government bonds in the form of Bitcoin. To establish a legal framework for this, his government called out to the Congress of the Central American state Reuters 20 legislative proposals. Finance Minister Alejandro Zelaya also promised that the first bond would be launched this year. It is said to be worth one billion US dollars and to help make the dream of El Salvador’s Bitcoin City a reality. Since the city is supposed to mine Bitcoin using volcanic energy, the bonus is also available as Volcano link known. Half of the money they raise will be invested in building infrastructure. The state uses the remaining amount to expand its own BTC reserves.
Violent protests in Kazakhstan sent Bitcoin’s hashrate downhill
The last few months have seen a boom in the mining industry in Kazakhstan. In the international ranking, the country now ranks second in the Bitcoin hashrate. Thus, last week’s riots were not without consequences for the crypto space. In response to rising fuel prices, people took to the streets. The president declared a state of emergency and removed the government. Since then, violent clashes between protesters and security forces have left an unclear number of deaths and injuries. On January 7, President Tokayev even issued an official order to fire his police units.
In the course of the conflict, the state-owned Kazakhtelecom also repeatedly disconnected the Internet since January 5. The government probably wants to make it difficult to exchange information between its opponents. Then the global Bitcoin hashrate collapsed by 13.4 percent. Proof of the prominent position of Kazakh mining farms. At the time of this article’s publication, it was unclear whether the internet in the central Asian country would have returned to normal operation.
Kosovo bans mining
In Kosovo, meanwhile, things are also getting awkward for crypto miners. Because the Balkan state government started a restrictive course against cryptocurrency mining in response to persistent power shortages. Therefore, law enforcement authorities are urged to avoid mining Bitcoin and co in the future. Due to power shortages, the disaster has been in effect in Kosovo since December. A particularly harsh winter caused the failure of many coal-fired power plants that produce a large part of Kosovo’s electricity. Therefore, the situation in the country is also tense beyond the crypto industry.
Estonia Tightens Information Rules for Bitcoin Exchanges
At the beginning of the year, Estonia tightened the rules for encryption service providers. Already on December 23, the Baltic state parliament approved a corresponding legislative proposal. The main objective is to reduce the risk of crime. The law expands the ban on opening anonymous digital accounts, which was passed in 2020. Bitcoin exchanges and comparable providers will be required in the future to verify the identities of their customers. The information should be stored in a way that allows it to be assigned to a particular transaction at a later date. Therefore, the rules are similar to those that apply to traditional banking transactions. Also, only Estonian-based companies will be able to apply for a license as an encryption service provider in the future. However, selling a license to external providers is prohibited. Small changes for ordinary Bitcoin hodlers. The law does not contain a ban on cryptocurrencies and does not oblige anyone to transmit their private keys.
Thailand introduces cryptocurrency tax
Thailand’s Bitcoin fans will be asked to pay more in the future. Because the Bangkok daily reported on January 6 that Thailand’s Treasury Department would require a 15 percent tax on crypto earnings. The application of income tax is related to the growth of the cryptocurrency market and the associated increase in the value of cryptocurrencies. The tax is said to apply to both miners and individuals. It is currently unclear what amount will apply. All those affected must present their crypto earnings for the year 2022 to the tax authorities. So far, only Bitcoin exchanges appear to be exempt from this rule.
Mexico is working on CBDC by 2024
Mexico is entering the race for its own digital central bank currency (CBDC). The government announced via Twitter that its central bank plans to start issuing its own CBDC by 2024. Exact details on the digital peso are still pending, but the project obviously aims to promote the inclusion of the financial market in the Central American state. More than half of Mexican adults do not have a bank account. “Banking for the unbanked ” it works not only as a creed of the Bitcoin community, but also as an argument for the development of a centralized digital currency.
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