March 28, 2022

March 28, 2022

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EmergingCrypto.io Weekly Update March 20 - March 26

Latin America

Image Credit: Rafaela Biazi via Unsplash

The city of Rio de Janeiro to allow urban property tax payments to be paid in crypto

Paying taxes with crypto is unavailable for most people around the world, but not in Brazil. Last week the municipal government for the city of Rio de Janeiro announced that in 2023 the city will accept cryptocurrencies when paying the Urban Property and Territorial Tax (IPTU). To facilitate crypto payments the municipality will hire companies who will be able carry out the payments and subsequently convert the crypto to Brazilian reais. Brazil is a particularly friendly country when it comes to blockchain and crypto innovation, including a number of high profile start ups such as Mercado Bitcoin and GoLedger. Don't sleep on Brazil, the Latin American giant is a blockchain and crypto leader. (Read on EmergingCrypto.io; Read on Blocknews) 

Bitcoin will NOT be legal tender in Honduras

The Internet was lighting up last week as if it was Christmas in March at the news that Honduras will be adopting Bitcoin as legal tender. However, the rumors that kept Bitcoin maximalists jumping at excitement turned out to be false. The Central Bank of Honduras (BCH) indicated in a statement that bitcoin was neither recognized as legal tender nor regulated, and “any transaction carried out with these types of virtual assets is the responsibility and risk of those who do it.” However, in the same statement the BCH nodded at the potential adoption of a Central Bank Digital Currency (CBDC) and is continuing to study the viability of issuing a CBDC that has the characteristic of being recognized as legal tender. So far, El Salvador continues to be the only country in the world at the moment to recognize bitcoin as legal tender. (Read on EmergingCrypto.io; Read on Cointelegraph)

Asia

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FIFA and Crypto.com sign agreement for exclusive crypto ad rights during the 2022 Qatar FIFA World Cup

The 2022 FIFA World Cup in Qatar is coming up quick and perhaps the biggest headliner related to the global football tournament last week was the inked sponsorship deal with Singapore-based Crypto.com. The company will be the exclusive crypto trading firm able to advertise its services during the tournament. Crypto.com has been on a sponsorship spree over the last year, inking high profile sponsorship deals with the NBA team Philadelphia 76ers, the Ultimate Fighting Championship, Formula 1, and signing a $700+ million USD 20-year contract for the naming rights to the Staples Centre, home of the NBA franchise Los Angeles Lakers. The FIFA World Cup will run from November 21 to December 18, 2022. (Read on EmergingCrypto.io; Read on Blockchain.News)

Coinbase continues its expansion into India despite regulatory hurdles

Although the level of retail investors and blockchain, crypto, and Web3 projects starting in India continue to grow, regulatory uncertainty pertaining to the use and taxation of crypto has been an ongoing discussion and debate in India's government. Nevertheless, Coinbase is leaning into the Indian market to expand its market presence, products, and investment dollars in the country of roughly 1.4 billion people. Coinbase Ventures, the company's investment arm, is partnering with India-based Buidlers Tribe, a Web3 incubator, to invest in and support startups focused on Web3. Furthermore, Coinbase has begun rolling out support for India's payment systems, Unified Payments Interface (UPI), one of the most used digital payment systems in India for everyday retail payments, and Immediate Payment Service (IMPS), an instant payment inter-bank electronic funds transfer system. (Read on EmergingCrypto.io; Read on CoinCrunch.in)

Africa

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African crypto users grow by 2,467.2% in 2021: KuCoin

An analysis released by crypto exchange, KuCoin, reported that African crypto users grew by 2,467.2% in 2021. Across the entire continent the monthly average transactions from January 2021 to 2022 increased 1,386.7%, accounting for 2.8% of global volumes. Part of the growth and adoption can be attributed to blockchain-based peer-to-peer (P2P) payments, which have recently been the preferred medium to pay for microwork remote jobs and cross-border remittance payments. More than 88.5% of cryptocurrency transactions made by Africans are cross-border transfers due to low fees and fast final settlement without the fear temporary freezes of transferred funds. KuCoin concluded that "With the proper legislative attention and acceptance of the need for such digital technologies by the authorities, crypto platforms could be an effective steppingstone for the overall growth of Africa’s GDP." (Read on EmergingCrypto.io; Read on Cointelegraph) 

Morocco discusses crypto regulation with the IMF, World Bank, and other central banks

Morocco is the leading Middle Eastern and North African (MENA) country in crypto ownership. Therefore, it's no surprise that the Central Bank of Morocco is currently in discussion with the International Monetary Fund (IMF), the World Bank, and other central banks on crypto regulation best practices. Abdul Latif Al Jawhari, Governor of Central Bank of Morocco, commented that the central bank is not against virtual currencies, however, they are "…surrounded with difficulties and dangers especially when it comes to money laundering, and terrorism, given the difficulty in tracing crypto transactions.” In February 2021 the Central Bank of Morocco established a committee to study crypto and CDBC regulation. (Read on EmergingCrypto.io; Read on UNLOCK Blockchain)

Eastern Europe

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There has been considerable chatter since the beginning of the Russian war in Ukraine on the use of cryptocurrencies as a means to avoid western sanctions. This week we will be highlighting two articles that cover this perspective.

Global regulators scrutinize crypto use amid the Russian war in Ukraine

The Russian war in Ukraine has spurred global regulators to pay closer attention to how cryptocurrencies can be used to evade western sanctions. On the one hand, crypto has been considered a crucial lifeline to Ukraine's government, military, and non-governmental organizations (NGOs) who've been able to accept crypto-based donations to support their resistance against Russia. On the other hand, concerns have been raised about crypto's ability as a lifeline for sanctioned Russians who are allegedly liquidating their crypto holdings to either reinvest in real estate or convert it to hard currency outside of Russia. The United Arab Emirates has been reported to be a market open to Russian-owned crypto. (Read on EmergingCrypto.io; Read on Blockchain.News) 

Russia open to accepting bitcoin as payment for oil and gas

Rounding of this week's newsletter, the head of Russia’s State Duma committee on energy, Pavel Zavalny, was puffing his chest last week at US, UK, and EU sanctions and announced that Russia is exploring alternative way to receive payment for oil and natural gas exports including roubles, other fiat currencies, and bitcoin. In a display of political theater, accepting decentralized cryptocurrencies as a means to evade sanctions is easier said than done. For example, China, a major trading partner and importer of Russian energy assets, banned cryptocurrencies which already limits the use of bitcoin for payment. Nevertheless, Zavalny's comments highlighted how a decentralized cryptocurrency like bitcoin provides a means for P2P commerce that cannot be censured, is open, and provides final settlement of payment...even for sanctioned countries. (Read on EmergingCrypto.io; Read on BBC)

Thanks for reading and have a great week ahead!