Ladies and Gentlemen, welcome to the Coinsents Crypto Wire, your regular update of news and events regarding Bitcoin, Ethereum, the other digital assets and the greater Global geopolitical scene at large. Today is December 21, 2022.
Central Bank Digital Currencies or CBDCs are being prepared for rollout with more than 100 countries around the world developing their own CBDCs. The Bank for International Settlements, the central bank of central banks, anticipates that all will issue their CBDCs from 2023 to 2025. CBDCs will have programmable features that allow central banks to set limits on how much can be bought, where it can be bought, when it can be bought, and how much can be saved. There is also concern about the ability to create negative interest rates with CBDCs, which could result in currency being slowly destroyed if it is not spenta, giving central banks greater economic control. This could potentially lead to a loss of financial sovereignty for users. The widespread adoption of CBDCs could also limit the availability of alternatives for investors such as cryptocurrencies.
Core Scientific, one of the largest Bitcoin miners by computing power, has filed for chapter 11 Bankruptcy in the Southern District of Texas Bankruptcy Court. The company's estimated liabilities are between 1 billion and 10 billion dollars, with an estimated asset range of the same amount. The Bankruptcy of Core Scientific, which accounts for about 10 percent of the computing power on the Bitcoin network, is set to have a significant impact on the already struggling industry. The company had previously warned of the risk of bankruptcy in October, and had been in talks to restructure its debt and raise Capital, which appear to have failed
in India, the government has provided information to members of the country's Parliament on its plans to regulate cryptocurrencies, and investigations into crypto exchanges. The government said that the regulation of crypto assets requires international collaboration to prevent regulatory arbitrage. India's Reserve Bank is seeking a total ban on cryptocurrencies, due to their potential to threaten the country's financial stability, and a 30 percent capital gains tax has been imposed on citizens trading in crypto. India's central bank chief on Wednesday warned that the next financial crisis will come from private cryptocurrencies, adding that he still holds the view that cryptocurrencies should be prohibited.
The Central Bank of the Russian Federation intends to trial International trade settlements with cryptocurrencies. The State Duma, the lower House of Russia's Parliament, will consider a bill to legalize a domestic cryptocurrency market in an effort to bypass western sanctions. The bill would also legalize the mining and sale of cryptocurrencies, and would take effect from January, 2023. Russia has been kicked out of the Swift global banking system, and lacks a diversified economy and stable business environment, according to the Wilson Center a United States-based think tank
Cryptocurrency lender Blockfi has filed a motion in a U.S Bankruptcy court requesting permission to allow users withdraw their cryptocurrencies from frozen blockfi wallets. The company filed for Chapter 11 Bankruptcy protection in November, 2022, and suspended withdrawals due to significant exposure to FTX. The motion would allow Blockfi to update its user interface to reflect transactions as of the platform's laws, and is scheduled for a hearing on January 9, 2023. Blockfi has indicated that the motion will not impact withdrawals or transfers from Blockfi interest accounts, which remain paused.
Silvergate Capital may have played a role in the collapse of cryptocurrency exchange FTX in November. Three U.S senators claim that an account at FTX was at the center of the collapse, and that the bank is reviewing transactions between FTX and Alameda Research. Silvergate has previously admitted to having exposure to FTX, but, claimed it was less than 10 percent of user deposits. The bank has faced criticism in multiple class action lawsuits over its association with FTX, as well as allegations of handling laundered money from smugglers and drug traffickers in South America.
Gleec BTC Exchange has acquired Brazilian-based exchange platform Blocktane. Tthe acquisition coincides with the recent passing of a bill in Brazil that legalizes the use of crypto payments within the country. Gleec BTC Exchange plans to expand its crypto services to the Brazilian market, and establish a presence in other Latin American countries. Gleec expects the regulatory framework for crypto payments in Brazil to provide more reliable and secure crypto services in the country.
Ethereum co-founder Vitalik Buterin has criticized Ripple's XRP for being completely centralized, claiming that for a project to be part of the crypto space it needs to utilize cryptography, and have "some kind of chain data structure somewhere." Ripple CTO, David Schwartz, responded by saying that Buterin "still doesn't understand, or, is pretending not to understand that Ripple is a company and XRP is a digital asset." Ripple has argued that it holds less than 50 percent of the total XRP supply, and that each validator on its network has equal voting power.
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