Bitcoin News and Finance: What You Need to Know

With just a four-day window to go, the U.S. Federal Reserve appears primed to raise the federal funds rate by 25-basis-points (bps) at the forthcoming Federal Open Market Committee (FOMC) meeting scheduled for Wednesday. The market presently maintains the conviction that this quarter-point uptick is inevitable, and a group of 106 economists, according to a poll conducted by Reuters, are of the view that this will signify the concluding escalation of the ongoing tightening cycle. Former Fed Chair Ben Bernanke and Polled Economists Echo Anticipation of Final Federal Rate Hike This Wednesday, all eyes are on the U.S. central bank as it stands on the threshold of a potential 25bps boost to the pivotal bank rate, pushing it to hover within the 5.25%-5.50% spectrum. The market has preemptively accepted the likelihood of this quarter-point advancement. To illustrate, data from CME Group’s Fedwatch tool as of Saturday, July 22, 2023, signals a near-certain 99.2% probability of this 25bps e

Financial megalith Blackrock’s bitcoin exchange-traded fund (ETF) application has now been accepted by the U.S. Securities and Exchange Commission, and added to the regulator’s docket. In related news, a former official from the SEC has said the recent ruling on XRP from the SEC v. Ripple case “resides on shaky ground” and is likely to be reversed. This and much more just below, in the latest Bitcoin.com News Week in Review. SEC Accepts Blackrock’s Bitcoin ETF Application The U.S. Securities and Exchange Commission (SEC) has accepted the application for a bitcoin exchange-traded fund (ETF) filed by asset manager Blackrock. The move indicates the regulator is preparing to seriously consider a bitcoin ETF and could eventually set the stage for wider adoption of crypto assets and products. Read More Nobel Laureate Paul Krugman Says US Dollar Dominance Won’t Last Forever but Doubts Chinese Yuan Can Replace USD Nobel Prize-winning economist Paul Krugman says the U.S. dollar’s domin

Copy trading has disrupted the crypto industry and is increasingly the trading strategy preferred by less experienced traders says Gracy Chen, managing director of the crypto trading platform Bitget. While copy trading is gaining popularity globally, traders and prospective users from Africa appear more interested in the strategy than those from other regions. Africa-Based Users More Interested in Copy Trading According to Gracy Chen, the managing director of the crypto derivatives and copy trading platform Bitget, copying trading is a trading strategy which has not only “disrupted the crypto industry” but has become increasingly more popular with novice traders. She added that for some cases, copy trading has proven to be an effective strategy during the so-called “crypto winter.” To support such assertions about this portfolio management strategy, Chen made reference to a report highlighting the “300% growth in copy trading adoption in the last 24 months.” As the report (which r

Artificial intelligence (AI) research lab Openai announced it’s launching an Android version of its Chatgpt chatbot. The application, which will be available for download next week, comes after recent updates of Google’s Bard and a report revealing that Apple is working on its own chatbot service. Android Users to Have Chatgpt in Their Pockets, Openai Says Microsoft-funded AI developer Openai is releasing an Android app for its chatbot powered by artificial intelligence technology, Chatgpt. It will be rolling out to users next week, the company said, but can be pre-ordered in the Google Play Store since Friday. Announcing ChatGPT for Android! The app will be rolling out to users next week, and you can pre-order in the Google Play Store starting today: https://t.co/NfBDYZR5GI — OpenAI (@OpenAI) July 21, 2023 With the application, people with Android phones will have Chatgpt in their pockets, the company added, promising them its latest advancements. The app will be free and all

China’s central bank governor has revealed that transactions using the country’s central bank digital currency (CBDC) reached 1.8 trillion yuan ($250 billion) at the end of June. In addition, the People’s Bank of China (PBOC) official stated that digital yuan in circulation amounted to 16.5 billion yuan. Latest Digital Yuan Stats People’s Bank of China (PBOC) Governor Yi Gang disclosed the latest statistics on China’s central bank digital currency (CBDC) on Wednesday at a lecture organized by Singapore’s central bank, the Monetary Authority of Singapore (MAS). The Chinese central banker revealed that transactions utilizing China’s central bank digital currency, also called e-CNY, reached 1.8 trillion yuan ($250 billion) at the end of June. By comparison, approximately 100 billion in digital yuan transactions were recorded in August last year. Yi also revealed that China’s central bank digital currency in circulation amounted to 16.5 billion yuan at the end of June. Moreover, he st

The heavily anticipated BRICS currency is not on the agenda to be discussed at the economic bloc’s upcoming leaders’ summit, according to South Africa’s diplomat in charge of BRICS relations. He clarified that the BRICS members will focus on de-dollarization and promoting the use of national currencies in international trade instead of the U.S. dollar. BRICS to Focus on Reducing Dollar Reliance The topic of a common BRICS currency is not on the agenda to be discussed at the economic group’s upcoming leaders’ summit, South Africa’s diplomat in charge of BRICS relations, Anil Sooklal, reportedly said Thursday. South Africa, being the current chair of the BRICS group, will be hosting the summit in Johannesburg on Aug. 22-24. Sooklal explained that the BRICS nations (Brazil, Russia, India, China, and South Africa) will discuss using national currencies and reducing reliance on the U.S. dollar. He was quoted by Reuters as saying: There’s never been talk of a BRICS currency, it’s not o

The U.S. Securities and Exchange Commission (SEC) has told a federal court that some portions of the Ripple ruling regarding XRP “were wrongly decided.” The regulator has asked the court to ignore parts of the ruling, noting that “SEC staff is considering the various available avenues for further review and intends to recommend that the SEC seek such review.” SEC Disagrees With Ripple Ruling on Retail Investors The U.S. Securities and Exchange Commission (SEC) stated in a new filing for its lawsuit against Terraform Labs and its co-founder Do Kwon that some decisions in the court ruling on the SEC v. Ripple case regarding XRP were wrong. While noting that the Ripple ruling regarding institutional investors supports the SEC’s claims, the securities watchdog stated: “However, with respect to the programmatic and other sales, the SEC respectfully avers that Ripple conflicts with and adds baseless requirements to Howey and its progeny.” The regulator added: Respectfully, those por

The Nigerian social payments platform Bundle said on July 20 it was shutting down its crypto exchange services business and will now focus on its peer-to-peer platform known as Cashlink. Bundle said users must withdraw or convert their digital assets to the stablecoin tether on or before Aug. 30. Bundle Says Transition Period Is to Last 60 Days The Nigerian social payments platform, Bundle, said on July 20 that it was ceasing operations of its crypto exchange services and will now focus on the peer-to-peer platform known as Cashlink. In a statement, Bundle said the decision to shut down exchange services follows “shareholders’ decision to restructure the business to focus on Cashlink.” Founded by Yele Bademosi, Bundle started operations in 2020 and at the time of the announcement the platform had 50,000 monthly active users and a monthly volume of $50 million. Cashlink, on the other hand, is reported to have recorded over 3 million transactions in under two years. According to a

According to Enrico Rubboli, the CEO of Mintlayer, Bitcoin exchange-traded funds (ETFs) can potentially act as “a gateway to crypto” for users who are likely to eventually show greater interest in the underlying asset. Rubboli argued that while bitcoin maximalists may view Blackrock or any other traditional financial institutions’ ETFs as an affront to the ideals of decentralization, such ETFs could yet prove to be one of the most effective ways of hastening the adoption of cryptocurrencies. The Benefits of Tokenization Rubboli , whose platform Mintlayer enables the building of decentralized finance ecosystems on the Bitcoin blockchain, told Bitcoin.com News that he concurred with Blackrock’s assertion that its bitcoin ETF is likely to have a “monumental” impact on the financial ecosystem. To support this view, the CEO highlighted how the approval of the ETF is likely to encourage traditional financial institutions to invest in “protocols that enable tokenization to happen.” When t

Crypto exchange FTX is trying to regain $1 billion in a lawsuit against founder Sam Bankman-Fried (SBF) and some former executives. FTX’s new management argues the funds were misappropriated through dubious deals and transactions made before the coin trading platform went bankrupt last fall. Failed Crypto Firm FTX Files New Lawsuit Against Founders and Chiefs FTX Trading , the company which operated what was one of the largest crypto exchanges, sued its founder Sam Bankman-Fried and other former executives on Thursday in an attempt to recover more than $1 billion they allegedly diverted. Besides Bankman-Fried, among the defendants named in the suit are co-founder and former FTX Chief Technology Officer Gary Wang, former CEO of SBF’s Alameda Research hedge fund Caroline Ellison, and former FTX Engineering Director Nishad Singh, Reuters and Bloomberg reported. The complaint filed in U.S. Bankruptcy Court, District of Delaware, accuses them of misappropriating and using the money to

The exchange rate of the Nigerian currency versus the greenback recently plunged to an all-time low of NGN860:USD1. The naira’s depreciation has been attributed to shortages of foreign exchange on the official market and the rising demand for forex. The Central Bank of Nigeria (CBN) said it has revoked the licenses of nearly 2,700 bureaux de change (currency exchanges). Widening Gap Between Official and Parallel Market Exchange Rates On July 20, the Nigerian currency reportedly hit a new low of NGN860 per dollar on the parallel market. The currency’s fall widened the gap between the so-called import and export weighted average rate (NGN773:USD1) and the rate offered by black market dealers. According to a Reuters report , the currency’s plunge followed the Central Bank of Nigeria (CBN)’s decision to float the naira, which was made shortly after Bola Ahmed Tinubu’s inauguration as the Nigerian president. The report added that the naira’s depreciation came a week before the CBN mone

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has asked Congress for more funding for his agency to address “risks in the crypto markets.” In a Senate hearing, he stressed: “We’ve seen the Wild West of the crypto markets, rife with noncompliance, where investors have put hard-earned assets at risk in a highly speculative asset class.” SEC Seeks More Funding to Police Crypto Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), talked about cryptocurrency during his testimony on Wednesday before the U.S. Senate Appropriations Subcommittee on Financial Services and General Government regarding the SEC’s Fiscal Year (FY) 2024 budget request. “I am pleased to support the President’s FY 2024 request of $2.436 billion for SEC operations, to put us on a better track for the future,” Gensler told lawmakers. After outlining “tremendous growth” and changes in the U.S. capital markets, the SEC chairman stated: We’ve seen the Wild West of the cry

Bitmain, the mining rig manufacturer, has announced the launch of a new rig that mines the digital currency filecoin (FIL). Similar to the company’s KAS Miner KS3, the new FIL miner carries a hefty price tag of $38,888 per machine. Bitmain Introduces On-Rack Filecoin Miner Bitmain announced Thursday that it will begin selling a newly manufactured Filecoin (FIL) mining rig. Filecoin, a decentralized, blockchain-based storage network, was launched by Protocol Labs in 2017. Its mining algorithm, known as proof-of-replication and proof-of-spacetime, was originally designed to resist application-specific integrated circuits (ASICs) in an effort to encourage decentralization. Despite this, Bitmain and other manufacturers have developed ASICs specifically for mining FIL and also offer FIL cloud mining contracts . In the announcement on Thursday, Bitmain stated that the on-rack filecoin miner will be sold throughout the day on Friday for $38,888 per unit. Bitmain detailed that the machin

Ilya Lichtenstein and Heather Morgan, the New York-based couple implicated in the alleged laundering of $4.5 billion in bitcoin pilfered from the 2016 Bitfinex cyber-attack, have reached a plea bargain, as revealed by recent court records. The pair is scheduled to appear before U.S. judge Colleen Kollar-Kotelly on August 3, 2023, and will be mandated to surrender all cryptocurrency assets and funds they possessed prior to their apprehension. NY Duo Set to Surrender More Than $2.8B in Historic Plea Deal The Department of Justice reported the arrest of Ilya Lichtenstein and Heather Morgan on February 8, 2023, for purportedly conspiring to launder proceeds from the theft of 119,754 bitcoins from Bitfinex. Morgan was granted bail in July 2022 with permission to seek lawful employment but her husband remained incarcerated. Now, one year after Morgan’s release on certain terms, both individuals have struck a deal with the government. Court documents filed on July 20 and 21, 2023 indic

Australia’s securities regulator has canceled the license of the local FTX entity, allowing it to perform only limited financial services. These will be related to the termination of derivatives with clients and arrangements to compensate retail customers. ASIC Revokes Financial Services License of Crypto Exchange FTX Subsidiary The Australian Securities and Investments Commission (ASIC) announced it had canceled the financial services license of FTX Australia, a company owned by the failed crypto exchange FTX which filed for bankruptcy in the United States last fall. “ASIC has cancelled the Australian financial services (AFS) license held by FTX Australia Pty Ltd (FTX Australia), effective from 14 July 2023,” the regulatory body said in a press release published Thursday on its website. Under the cancellation terms, FTX Australia will be permitted to provide limited financial services related to the termination of existing derivatives with clients until the end of July 12, 2024

Ethena, a protocol that seeks to build a banking system independent stablecoin, has announced that it has raised $6.5 million in its seed round. The round, led by Dragonfly, aims to help issue Ethena’s decentralized stablecoin product in Q3 2023, which was inspired by an article written by former Bitmex CEO Arthur Hayes. Stablecoin Protocol Ethena Raises $6.5 Million in Seed Funding Round Ethena, an Ethereum stablecoin protocol, has raised $6.5 million in its seed round. The funding round led by Dragonfly Capital also had the participation of former Bitmex CEO Arthur Hayes and some derivatives exchanges such as Deribit, Bybit, Okx, Gemini, and Huobi. Ethena’s goal is to bring to fruition a stablecoin that has no connection with the traditional financial system. The protocol was inspired by the “ Dust on Crust ” Arthur Hayes article, where he explains how a stablecoin can be constructed using delta-neutral techniques, derivatives, and onchain collateral. Ethena uses the concept o

Importers are accusing the Central Bank of Argentina of stalling on the delivery of dollar-based payments under the pretext of high freight costs. According to importers, the Argentine government considers freight costs exceeding 15% of the value of the merchandise imported as an inconsistency. Central Bank of Argentina Delays Dollar Disbursements to Importers The government of Argentina is now being accused of delaying the delivery of dollars to Argentine importers by using freight costs as an excuse. According to Argentine economist Ignacio Olivera Doll, the government is using a limit for the cost of freights that hadn’t been applied before, as a basis for these actions. The government has denied dollar requests for freight payments whose costs exceed 15% of the value of the merchandise transported. Argentine importers, as a result of exchange controls, need to receive dollars via government approval to conduct their operations. Customs General Manager Guillermo Michel denied

South Africa’s top diplomat responsible for BRICS relations has revealed that more than 40 countries are interested in joining the economic bloc. Among them, 22 nations have formally applied for membership. He believes that the BRICS group could expand to include more than 50 countries. BRICS Group Attracts More Than 40 Nations Anil Sooklal, South Africa’s top diplomat in charge of BRICS relations, and officials from the South African foreign affairs department shared the latest stats on BRICS membership applications in a press conference in Johannesburg on Thursday. South Africa will host this year’s BRICS summit. The economic bloc comprises Brazil, Russia, India, China, and South Africa. Sooklal revealed that 22 countries have formally asked to join the BRICS. He was also quoted by Reuters as saying: An equal number of countries … have informally expressed interest in becoming BRICS members … (including) all the major global south countries. Countries interested in joining th

JPMorgan has warned of the risks to the U.S. dollar’s dominance from escalating U.S.-China tensions and political instability. The global investment bank’s strategists anticipate “partial de-dollarization,” in which the Chinese yuan gradually assumes a more significant role in global trade. JPMorgan on De-Dollarization Threat Global investment bank JPMorgan has warned that the dominance of the U.S. dollar could be at risk due to rising tensions between the U.S. and China, as well as concerns about political instability within the United States. The firm’s strategists, led by Jan Loeys and Joyce Chang, explained in a report published on Tuesday that the markets are not adequately factoring in the risk of a “rapid and deep” decline in the U.S. dollar’s status as the preferred currency for global reserves and trade. They detailed: If U.S.-China tensions intensify and we get more global fragmentation, it would likely lead to de-globalization in trade and finance … In finance, it cou

The Federal Reserve has launched its Fednow Service for instant payments with 35 participating banks and credit unions, as well as 16 service providers. “The Federal Reserve is committed to working with the more than 9,000 banks and credit unions across the country to support the widespread availability of this service for their customers over time,” the U.S. central bank stated. Fednow Officially Live The Federal Reserve announced Thursday that its new system for instant payments, the Fednow Service, has launched with 35 participating banks and credit unions, the U.S. Department of the Treasury’s Bureau of the Fiscal Service, and 16 service providers. Participating financial institutions include BNY Mellon, JPMorgan Chase, Peoples Bank, U.S. Bank, and Wells Fargo Bank. “The Fednow Service is designed to maintain uninterrupted 24x7x365 processing with security features to support payment integrity and data security,” the Federal Reserve detailed, adding: The Fednow Service is ne

A Turkish court has sentenced Faruk Fatih Özer, the founder of the collapsed cryptocurrency exchange Thodex, to an effective seven months and 15 days in prison. During the trial, Özer denied being an executive of the crypto exchange when the platform allegedly failed to furnish the Tax Inspection Board with the documents requested. Appointment of Trustee Reportedly Made Submission of Requested Documents Impossible A court in Turkey has sentenced Faruk Fatih Özer, the founder of the defunct cryptocurrency exchange Thodex, to just over seven months in prison for failing to furnish the Tax Inspection Board with the documents it requested. However, according to a report in the Hurriyet Daily News, the Anatolian 17th Criminal Court of First Instance has since agreed to delay announcing the verdict as well as the implementation of the sentence. As explained in the report, Özer, who was arrested in Albania in Aug. 2022, claimed that he was not a company executive when the alleged crime w