Bitcoin Price Hits $10320 as Fed Chairman Confirms Crypto Is a Threat to US Dollar

“A ledger where you know everybody’s payments is not something that would … He also stressed the urgency of making quick progress on blockchain …

Bitcoin price and the overall crypto market reacted positively after Fed Chairman Jerome Powell recently stressed on the importance of private crypto-based transactions. He said that the Fed is working on a number of projects for digital currencies.

Bitcoin price surged over 5% on Tuesday, February 11, pushing it to a five-month high above $10,300 levels. With this move, BTC has surged nearly 50% since the beginning of 2020. At press time, BTC is trading 5.6% up for a price of $10, 304 with a market cap of $187 billion.

This latest price surge comes after the Federal Reserve chairman Jerome Powell expressed his interest in digital currencies. Congressman Bill Foster raised concerns about China’s aggressive push to the use of digital currencies. Responding to this, Powell said that the Fed has several projects underway.

This was enough to usher a fresh optimism in the crypto market. Apart from Bitcoin, a majority of the top-ten cryptocurrencies are showing gains between 5-10%. The overall cryptocurrency market cap added $20 billion soon after Powell’s comments, taking it to above $300 billion.

Powell Stresses Need for Private Crypto Transactions

Speaking on the issue of the American economy and its privacy policy, Jerome Powell also stressed the need for private crypto transactions. “A ledger where you know everybody’s payments is not something that would be particularly attractive in the context of the U.S.,” he said.

BREAKING: Fed Chairman Jerome Powell just came out in favor of private transactions for digital currencies.

He specifically said “A ledger where you know everybody’s payments is not something that would be particularly attractive in the context of the US.”

Game on 🙏🏽

— Pomp 🌪 (@APompliano) February 11, 2020

The Feb Chairman also assured that the U.S. is taking sufficient measures to keep with the pace of China’s development. Powell said that the Fed is currently investing a larger amount in digital currency developments. The cryptocurrency market took Powell’s comments is positive as the market surged soon after.

Besides, Powell also acknowledged that Facebook‘s entry in the crypto space with its native Libra cryptocurrency has been a game-changer. Facebook announced its Libra cryptocurrency in June 2019 but is yet to get regulatory approval for the same.

However, Powell admits that his agency understands the importance of digital currencies. And now it is working on further progress in this direction. He also stressed the urgency of making quick progress on blockchain development.

But Powell remains a bit skeptical about the implementation of the Digital Dollar due to privacy concerns. He added:

“The idea of having a ledger where you record everyone’s payments isn’t particularly attractive in the U.S.; it’s not a problem in China”.

It will be interesting to see how the Fed works out its way to accommodate digital currencies in the country’s financial ecosystem. One thing is sure that digital currencies have a huge role to play in the global economy for the next decade.

Altcoins, Bitcoin (BTC), Cryptocurrency News, News

Bhushan Akolkar
Author: Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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Cryptocurrency Fraud Cases: TN Police Issues Warning To Investors

EOW has taken this decision in the backdrop of cryptocurrency fraudulent cases. In 2018, RBI had put a complete ban on cryptocurrency transactions …
Cryptocurrency Frauds In Tamil Nadu: Police Issues Warning To InvestorsCryptocurrency Frauds In Tamil Nadu: Police Issues Warning To Investors

In a bid to curtail cryptocurrency-based transactions in Tamil Nadu, the state’s Economic Offences Wing (EOW) has now issued a warning to individuals dealing with cryptocurrencies.

According to a report in The Hindu, the department has taken this decision in the backdrop of cryptocurrency fraudulent cases reported in Tamil Nadu. A few cryptocurrency investors were cheated in these cases, however, accused are now arrested, it added.

“The public is hereby advised not to deal with cryptocurrencies including Bitcoins, Ethereum, Ripple and more. Those trading in virtual currencies were doing so at their own risk, given that the Reserve Bank of India (RBI) has not given a licence or authorisation to any company to deal in such cryptocurrencies,” the Economic Offences Wing said.

Notably, RBI, on April 6, 2018, had told banks to withdraw all support services that were being extended to crypto entities, thereby announcing a virtual ban on cryptocurrencies. The deputy governor of RBI, BP Kanungo, had then suspected that the rise of cryptocurrencies beyond a critical limit might bring financial instability in the country.

The EOW further highlighted that cryptocurrencies are not a currency as per the definition of currency in India. It is not a derivative as well, it added. Explaining further, the department said that it is only a virtual currency that is similar to gold or precious metals which behaves more like assets rather than currency. “Most cryptocurrencies including Bitcoin, Ripple, Litecoin and Ethereum are not backed by a sovereign guarantee, and therefore are not considered as legal tender,” the notice added.

Unlike other investment options such as stocks, mutual funds, among others, there are no government organisations which regulate cryptocurrencies around the world. Once duped, investors are left with no option to redress their grievances. Moreover, the Indian government has not yet given the status of legal tender to any cryptocurrency.

RBI has warned investors about these risks many times in the past. Moreover, it has also highlighted that cryptocurrency can be used for unethical practices such as money laundering. To address these issues, EOW said that a draft bill has also been proposed to ban cryptocurrencies in the country and provide for official digital currency.

On the other hand, there are many startups that are urging the RBI to allow the flow of cryptocurrencies in the country. In an open letter written to finance minister Nirmala Sitharaman last month, cofounder and CEO of cryptocurrency trading platform, CoinDCX Sumit Gupta cited benefits of cryptocurrencies. Moreover, the Internet and Mobile Association of India (IAMAI) has also filed a petition in the Supreme Court in favour of open crypto regulation in the country.

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The IRS Asks Very Deep Questions Regarding Your Cryptocurrency Activities

Filing taxes related to cryptocurrencies in the US can be a very painstaking endeavor. It now appears that the IRS crypto tax audit letter being sent out …

Filing taxes related to cryptocurrencies in the US can be a very painstaking endeavor. It now appears that the IRS crypto tax audit letter being sent out to users is a lot more invasive than initially assumed.

It is no secret that the IRS wants to target cryptocurrency holders.

The IRS Goes All-in on Cryptocurrency Usage

To do so, the agency will ask some very tough questions.

Some of those questions will not go over well with the general public.

As it turns out, the IRS wants to know a lot of things most people would never expect.

The copy of the 2017 tax return is perhaps the least annoying part of it all.

Detailed records of virtual currency acquisitions and liquidations are also somewhat easy to come by.

However, those records must include ATM transactions, cash transactions, and correspondence with counterparties for any of those activities.

Interestingly enough, the IRS also wants to know about airdrop tokens, currencies obtained through hard forks, faucet usage, and tips.

While this is all-encompassing, it will also create a ton of headaches for American users.

It does not appear that any of the current tax software solutions will be able to check all of these boxes.

It is a very interesting approach by the tax agency, but not necessarily the correct one.

Image(s): Shutterstock.com

How to Create a Coinbase Account?

An important component of the crypto-world, Coinbase is the premier fiat-on-ramp and digital currency exchange. It allows people to buy …

An important component of the crypto-world, Coinbase is the premier fiat-on-ramp and digital currency exchange. It allows people to buy cryptocurrencies using FIAT or traditional money and also to cash crypto-assets back to it. Also, it features a secure exchange where users can trade crypto-assets. The service further features a wallet, where users can store cryptocurrencies and analyze data related to price/portfolio worth.

This article will guide you on how to create an account on Coinbase, since its one of the chief gateways, to the crypto-world.

Creating an Account

Coinbase user interface is designed for simplicity and ease of use. An account can be created in a few simple steps. Once you have gotten to the website, you need to open the sign up page. The next step would be to enter the complete name, email address and desired password. You will now receive a verification link on the entered email address, which you must click to proceed to the next level of account set up. Next, the system will ask you to input your mobile number to enable two factor authentication, this adds a robust layer of security, so even if your email address and password is compromised, the attacker can’t login to your account, unless the code sent to your mobile is entered. Your account on Coinbase is now created.

FIAT-On-Ramp

The most salient feature of your Coinbase account is that you can buy crypto assets using your debit/credit card and bank account. You can also convert your crypto-assets back to FIAT and withdraw to your bank or PayPal account. This service however isn’t currently available in all countries, you must check the Coinbase documentation to check the countries, where you can do that.

Cryptocurrency Exchange

Coinbase also has a digital currency exchange where you can trade crypto-assets. The exchange interface also is user friendly and similar to other prominent exchanges.

Coinbase Wallet

Coinbase features an inbuilt multi coin wallet where you can store your crypto-assets securely. It can also be used even if you don’t have a consumer account on the service. It can accessed on Web or iOS/Android version clients. However, you don’t control the private keys on the wallet and hence its advisable to withdraw it to an external wallet. But Coinbase also provides vault and multi signature wallet options, both of these options are more secure than regular wallets, because they require multiple providers to authenticate transfers. The platform also launched its own debit card which allows users to use their crypto-assets easily, like traditional debit cards, but the service rollout is currently limited.

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Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.

Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.

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Taha Zafar

A cryptocurrency and blockchain enthusiast by heart. Taha Zafar has been active in this space since 2017, he has experience with both investing and fundamental analysis of crypto assets. He has also worked extensively with deflationary tokens.

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    UK cryptocurrency regulations may soon extend to monitor user wallets

    UK cryptocurrency regulations have been the Financial Action Task Force (FATF) compliant, but it appears that the government may opt to monitor …

    UK cryptocurrency regulations have been the Financial Action Task Force (FATF) compliant, but it appears that the government may opt to monitor user wallets.

    To ensure money laundering is curbed, the Financial Conduct Authority (FCA) of the United Kingdom (UK) has proposed certain limitations for software programs that are built by crypto developers.

    The Anti-Money Laundering and Counter-Terrorism Financing regulations are expected to be extended for entities or institutions that are concerned with digital transactions and cryptocurrencies. These requirements will be enforced in the upcoming year.

    The regulations will also apply to companies that produce open-source software and those that produce light wallet software.

    UK cryptocurrency regulations: Tracking transactions

    The requirements were initially proposed as a decision of her Majesty’s Treasury. The decision aimed to widen the approach of Anti-Monday Laundering and Counter-Terrorism Financing regulations for companies that deal with cryptocurrencies.

    This proposal is expected to be approved and enacted into United Kingdom’s Law by Q1 2020.

    Coin Center; a research institute for cryptocurrency that is based in the United States, has spoken against the extension of these regulations, exclaiming that such proposals violate the rights of freedom of speech and privacy.

    Conclusively, the authorities are striving to have control over cryptocurrency and crypto technology. The newly proposed regulations aim to track user transactions, especially those that are unlawfully performed.

    Imposing Restrictions

    The proposed extension of UK cryptocurrency regulations aim to impose more control over the crypto space. Previously, the FCA also imposed restrictions on cryptocurrency investors. The authority implied that conventional buyers of cryptocurrencies have inadequate knowledge of the crypto space, which makes them unable to make informed decisions.

    Since late June 2019, the cryptocurrency industry is now required to share user data with the Financial Action Task Force (FATF).

    UK’s Financial Conduct Authority has not yet provided any explicit information regarding the subject; thus, it is not certain if open-source software code will be exempt from the extended regulations.

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