A week of questions: Will the price of Bitcoin exceed half a million US dollars? Does the Salvadoran BTC bond deliver what it promises? Are SEC Regulatory Efforts Slowing Cryptocurrency Innovation?
Bitcoin bond on shaky ground
Nayib Bukele, who claims to be the “world’s coolest dictator” and a self-confessed crypto fanatic, is setting up a bitcoin bond to bolster the country’s treasury. The goal: to raise $1 billion to increase the country’s bitcoin holdings, as well as fund the “Bitcoin City” that has been built from scratch.
As the Financial Times reports, this elicits at least a frown from observers. As the former governor of the central bank of El Salvador comments:
If that goes wrong, many doors will be closed.
In short, Bukele is making a bet at the expense of his people: if the price of Bitcoin evolves positively, the treasury will benefit. If there is a bearish rally, things look quite unfavorable.
But that’s not all, the Bitcoin bond is also technically on shaky ground. Because the exchange on which the Bitcoin bonus will later be traded is BitFinex. And that is under the close scrutiny of regulatory authorities. It was kicked out of New York in 2020. Prosecutors convicted the company of misleading investors and fined it $18.5 million. Furthermore, there are still suspicions of bitcoin price manipulation with partner company Tether. If the authorities push further here, this could also affect Bukele’s Bitcoin bonus.
Is Gary Gensler preventing innovation?
For his part, US Republican politician Tom Emmer has criticized the Securities and Exchange Commission (SEC), specifically Gary Gensler. With their regulatory efforts, they are holding back innovation in the cryptocurrency sector.
My office has received numerous tips from crypto and blockchain companies that SEC Chairman Gary Gensler’s outreach efforts to the crypto community are burdensome, unwilling, and stifling innovation.
You can read the background here.
Bitcoin Price at $500,000: Moon Forecast by Mike Novogratz
Mike Novogratz doesn’t seem to have a problem with that. On the contrary: the founder and CEO of Galaxy Digital returns to put the bull’s horns. His forecast: the price of Bitcoin will break the 500,000 US dollar mark. However, when it comes to Novogratz, investors will need to be patient. Novogratz time horizon: 5 years.
The perma bull also comments on current discussions about the possibility of Russia using Bitcoin and other cryptocurrencies to circumvent sanctions.
There is no chance that the Russian government could use cryptocurrencies to circumvent sanctions. Us, [Galaxy] Digital, are regulated by 25 different authorities. I’m sure it’s the same with FTX, Binance, etc. […] Also, Bitcoin is a public blockchain.
If Novogratz has ever heard of privacy coins and unregulated crypto exchanges, he remains in the dark for now.
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