A new New York bill is set to limit crypto miners from using power from power plants. Meanwhile, Bitcoin gains over 5% to $31,441.76.

NY bill to limit crypto miners using power: Bitcoin gains over 5% to $31,441.76

El Salvador created headlines when it decided to adopt cryptocurrencies as a legal tender. Now, amid the ongoing price fluctuations due to the volatile market what will happen to its economy if Bitcoin collapses completely?

Is Bitcoin crash going to impact El Salvador's economy?

Dramatic fall in the value of TerraUSD, one of the largest stablecoins in the world sent shockwaves through cryptocurrency markets on Thursday. The movement pushed Tether (another major stablecoin) below dollar. This also sent bitcoin to 16-month lows.

Cryptocurrencies have been swept up in a sell-off in risk assets, which has picked up steam this week as data showed U.S. inflation running hot, deepening investor fears about the economic impact of aggressive central bank tightening.

The sell-off has meant that combined market value of cryptocurrencies is USD 1.2 trillion. This is less that half of the value cryptocurrencies had last November as per data from CoinMarketCap.

Tether, a reserve-backed stablecoin which is supposed to be pegged 1:1 to the U.S. dollar, dropped to as low as 95 cents earlier in the global session, according to CoinMarketCap price data. It was last at 99 cents.

Despite the volatility, US Treasury Secretary Janet Yellen said stablecoins like Tether and TerraUSD do not yet pose a systemic risk to the financial system.

"I wouldn't characterize it at this scale as a real threat to financial stability, but they're growing very rapidly and they present the same kind of risks we have known for centuries in connection to bank runs," she said during a House Financial Services Committee hearing.

On Thursday, bitcoin, the largest cryptocurrency hit a low of USD 25,401.05. This is its lowest value since December 28, 2020.

In the past eight sessions, it has lost more than a quarter of its value, or around $10,700, and is down 37% so far this year, trading far below the peak of $69,000 it hit in November 2021.

Bitcoin's correlation with the Nasdaq composite has been on the rise recently and is now up near its all time highest level, based on Refinitiv data. The Nasdaq composite has tumbled around 8% so far this month.

Ether, the world's second-largest cryptocurrency, fell to its lowest since June 2021, sinking as low as $1,700.

(With inputs from agencies)

Decode the geostrategy, diplomacy, and ideologies of the world’s unending wars. Catch our special series ‘World at War’ every Saturday at 8:30 PM IST and Sunday at 10:30 PM IST only on WION.

WATCH WION LIVE HERE

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false"><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

&nbsp;

Dramatic fall in the value of TerraUSD, one of the largest stablecoins in the world sent shockwaves through cryptocurrency markets on Thursday. The movement pushed Tether (another major stablecoin) below dollar.

Dramatic fall in the value of TerraUSD, one of the largest stablecoins in the world sent shockwaves through cryptocurrency markets on Thursday. The movement pushed Tether (another major stablecoin) below dollar. This also sent bitcoin to 16-month lows. Cryptocurrencies have been swept up in a sell-off in risk assets, which has picked up steam this week as data showed U.S. inflation running hot, deepening investor fears about the economic impact of aggressive central bank tightening. The sell-off has meant that combined market value of cryptocurrencies is USD 1.2 trillion. This is less that half of the value cryptocurrencies had last November as per data from CoinMarketCap. Tether, a reserve-backed stablecoin which is supposed to be pegged 1:1 to the U.S. dollar, dropped to as low as 95 cents earlier in the global session, according to CoinMarketCap price data. It was last at 99 cents. Despite the volatility, US Treasury Secretary Janet Yellen said stablecoins like Tether and TerraUSD do not yet pose a systemic risk to the financial system. "I wouldn't characterize it at this scale as a real threat to financial stability, but they're growing very rapidly and they present the same kind of risks we have known for centuries in connection to bank runs," she said during a House Financial Services Committee hearing. On Thursday, bitcoin, the largest cryptocurrency hit a low of USD 25,401.05. This is its lowest value since December 28, 2020. In the past eight sessions, it has lost more than a quarter of its value, or around $10,700, and is down 37% so far this year, trading far below the peak of $69,000 it hit in November 2021. Bitcoin's correlation with the Nasdaq composite has been on the rise recently and is now up near its all time highest level, based on Refinitiv data. The Nasdaq composite has tumbled around 8% so far this month. Ether, the world's second-largest cryptocurrency, fell to its lowest since June 2021, sinking as low as $1,700. (With inputs from agencies) Decode the geostrategy, diplomacy, and ideologies of the world’s unending wars. Catch our special series ‘World at War’ every Saturday at 8:30 PM IST and Sunday at 10:30 PM IST only on WION. WATCH WION LIVE HERE ×

Cryptocurrencies collapse, stablecoin Tether slumps against dollar

Bitcoin is no exception and following the plunge on Wall Street yesterday, World's largest cryptocurrency Bitcoin has also fallen to its lowest level since July of 2021.

Bitcoin: World's largest cryptocurrency drops as Wall Street shares tumble

Bitcoin has been acting volatile again.&nbsp;Its value seems to have been falling continuously over the weekend. It has dipped below $34,000 (£27,630), as per the Coinbase cryptocurrency exchange. &nbsp;

Since its peak in November last year, this cryptocurrency, which is actually the world's largest by market value, has nosedived and is down by 50%. &nbsp;

This comes as the stock markets around the world are facing a hard time and have been going down recently. &nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/technology/lawsuit-filed-against-tesla-ceo-elon-musk-to-prevent-twitters-buyout-477098" hreflang="en">Lawsuit filed against Tesla CEO Elon Musk to prevent Twitter's buyout</a>

Some Asian markets may witness downward trend again on Monday as Japan's benchmark Nikkei index is down by around 2%.&nbsp;

With a value of $636bn, Bitcoin seems to account for around a third of the whole cryptocurrency market. &nbsp;

The second biggest cryptocurrency in the world, Ethereum, has also been in dire straits and has gone down by over 10% last week. &nbsp;

Watch:&nbsp;Zimbabwe suspends bank lending in bid to arrest currency decline

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/zimbabwe-suspends-bank-lending-in-bid-to-arrest-currency-decline-477500/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

This downside in the value of digital assets has become a huge reason to worry for investors. So, it is a time to tread cautiously. &nbsp;

In earlier years of the cryptocurrency market, the volatile trading was not unusual in digital assets.&nbsp; &nbsp;&nbsp;

For most of the 2022, it had been relatively quiet though. &nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

(With inputs from agencies)&nbsp;

Bitcoin has been acting volatile again. Its value seems to have been falling continuously over the weekend. It has dipped below $34,000 (£27,630), as per the Coinbase cryptocurrency exchange.

Bitcoin has been acting volatile again. Its value seems to have been falling continuously over the weekend. It has dipped below $34,000 (£27,630), as per the Coinbase cryptocurrency exchange. Since its peak in November last year, this cryptocurrency, which is actually the world's largest by market value, has nosedived and is down by 50%. This comes as the stock markets around the world are facing a hard time and have been going down recently. Also Read: Lawsuit filed against Tesla CEO Elon Musk to prevent Twitter's buyout Some Asian markets may witness downward trend again on Monday as Japan's benchmark Nikkei index is down by around 2%. With a value of $636bn, Bitcoin seems to account for around a third of the whole cryptocurrency market. The second biggest cryptocurrency in the world, Ethereum, has also been in dire straits and has gone down by over 10% last week. Watch: Zimbabwe suspends bank lending in bid to arrest currency decline × This downside in the value of digital assets has become a huge reason to worry for investors. So, it is a time to tread cautiously. In earlier years of the cryptocurrency market, the volatile trading was not unusual in digital assets. For most of the 2022, it had been relatively quiet though. WATCH WION LIVE HERE (With inputs from agencies)

Is Bitcoin too volatile again? Value falls over 50% since last peak

Lawmakers in&nbsp;Panama's National Assembly on Thursday approved a bill to regulate the use and commercialisation of crypto assets in the Central American country renowned as a hub of offshore financial services.

The bill opens the door to private and public use of crypto assets, and will make it possible for people to pay their taxes with cryptocurrencies. Experts warned it could heighten&nbsp;Panama's reputation as a place lacking financial transparency.

The legislation is broader in scope than measures passed by El Salvador, which last year made bitcoin legal tender, said independent lawmaker and promoter of the bill Gabriel Silva.

Also read |&nbsp;<a href="https://www.wionews.com/world/panama-says-three-ships-hit-by-russian-missiles-in-black-sea-since-start-of-ukraine-invasion-463051">Panama says three ships hit by Russian missiles in Black Sea since start of Ukraine invasion</a>

"We're seeing the emergence of many different types of crypto assets like works of art," he said. "That's why we didn't want to limit ourselves only to cryptocurrencies."

The bill covers the trading and use of crypto assets, issuance of digital securities, new payment systems and the tokenization of precious metals. Tokenization is when rights to an asset are converted into digital formats.

Under the new legislation,&nbsp;Panamanians may use crypto assets as means of payment for any civil or commercial operation not prohibited by law in the country.

Watch |&nbsp;Panama: Lawmakers approve bill to regulate cryptos

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/panama-lawmakers-approve-bill-to-regulate-cryptos-474813/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Panama&nbsp;is on the European Union's list of tax havens, and Romain Dromard, chief executive officer at financial investment advisory firm K&amp;B Family Office, said the crypto bill would not help it appear more transparent.

"Panama&nbsp;was already in a bad position and these payment methods skip the due diligence processes that international organizations are asking&nbsp;Panama&nbsp;to embrace," he said.

The bill, which now passes to President Laurentino Cortizo to be signed, was approved in the assembly with 38 votes in favor, two abstentions and no votes against.

Belisario Castillo Saenz, chief executive officer of tokenisation firm Feänor Corp, argued that crypto assets could help the unbanked, given that internet penetration is high in&nbsp;Panama&nbsp;but only one in four people have bank accounts.

Also read |&nbsp;<a href="https://www.wionews.com/photos/february-23-in-history-first-mass-polio-vaccine-panama-canal-zone-and-more-365610">February 23 in history: First mass polio vaccine, Panama Canal Zone, and more</a>

The bill could also make banks that have created barriers to using cryptocurrencies more cooperative, said Jose Fabrega of CryptoSPA, a hub for crypto and blockchain services.

Still, K&amp;B's Dromard said the role banks will play under the new rules is unclear and forecast that it will take years for traditional institutions to use the assets.

In addition, small and medium businesses would not be able to switch to such highly volatile assets, he argued.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

Lawmakers in Panama's National Assembly on Thursday approved a bill to regulate the use and commercialisation of crypto assets in the Central American country renowned as a hub of offshore financial services.

Lawmakers in Panama's National Assembly on Thursday approved a bill to regulate the use and commercialisation of crypto assets in the Central American country renowned as a hub of offshore financial services. The bill opens the door to private and public use of crypto assets, and will make it possible for people to pay their taxes with cryptocurrencies. Experts warned it could heighten Panama's reputation as a place lacking financial transparency. The legislation is broader in scope than measures passed by El Salvador, which last year made bitcoin legal tender, said independent lawmaker and promoter of the bill Gabriel Silva. Also read | Panama says three ships hit by Russian missiles in Black Sea since start of Ukraine invasion "We're seeing the emergence of many different types of crypto assets like works of art," he said. "That's why we didn't want to limit ourselves only to cryptocurrencies." The bill covers the trading and use of crypto assets, issuance of digital securities, new payment systems and the tokenization of precious metals. Tokenization is when rights to an asset are converted into digital formats. Under the new legislation, Panamanians may use crypto assets as means of payment for any civil or commercial operation not prohibited by law in the country. Watch | Panama: Lawmakers approve bill to regulate cryptos Panama is on the European Union's list of tax havens, and Romain Dromard, chief executive officer at financial investment advisory firm K&B Family Office, said the crypto bill would not help it appear more transparent. "Panama was already in a bad position and these payment methods skip the due diligence processes that international organizations are asking Panama to embrace," he said. The bill, which now passes to President Laurentino Cortizo to be signed, was approved in the assembly with 38 votes in favor, two abstentions and no votes against. Belisario Castillo Saenz, chief executive officer of tokenisation firm Feänor Corp, argued that crypto assets could help the unbanked, given that internet penetration is high in Panama but only one in four people have bank accounts. Also read | February 23 in history: First mass polio vaccine, Panama Canal Zone, and more The bill could also make banks that have created barriers to using cryptocurrencies more cooperative, said Jose Fabrega of CryptoSPA, a hub for crypto and blockchain services. Still, K&B's Dromard said the role banks will play under the new rules is unclear and forecast that it will take years for traditional institutions to use the assets. In addition, small and medium businesses would not be able to switch to such highly volatile assets, he argued. WATCH WION LIVE HERE

Panama passes bill to regulate the use and commercialisation of crypto assets

The Central African Republic has become the world's second country to embrace bitcoin as legal cash, confirming reports that had been circulating for a few days.

The National Assembly passed and President Faustin Archange Touadera signed a bill authored by the minister of digital economy, Gourna Zacko, and the minister of finance and budget, Calixte Nganongo, according to a statement from his office.

The law provided a legal and regulatory framework for cryptocurrencies, as well as making Bitcoin (BTC) legal tender alongside the CFA franc.

"There’s a common narrative that sub-Saharan African countries are often one step behind when it comes to adapting to new technology," Finance Minister Herve Ndoba said last week, as quoted in Bloomberg.&nbsp;

"This time, we can actually say that our country is one step ahead."

The Central African Republic has a population of 4.83 million people, with roughly 11% having an internet connection.&nbsp;

El Salvador was the first country to recognise Bitcoin as legal cash less than a year ago.

Citizens of the Central American country were allowed to use the digital currency to pay for any good or service using a cyber wallet app, alongside the US dollar, which has been the official currency for the past two decades.

The International Monetary Fund (IMF) slammed the introduction.

It warned of "significant dangers connected with bitcoin's use in financial stability, financial integrity, and consumer protection," as well as the risks of issuing bitcoin-backed bonds.

WATCH WION LIVE HERE 
 
<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

(With inputs from agencies)

The Central African Republic has become the world's second country to embrace bitcoin as legal cash, confirming reports that had been circulating for a few days.

The Central African Republic has become the world's second country to embrace bitcoin as legal cash, confirming reports that had been circulating for a few days. The National Assembly passed and President Faustin Archange Touadera signed a bill authored by the minister of digital economy, Gourna Zacko, and the minister of finance and budget, Calixte Nganongo, according to a statement from his office. The law provided a legal and regulatory framework for cryptocurrencies, as well as making Bitcoin (BTC) legal tender alongside the CFA franc. "There’s a common narrative that sub-Saharan African countries are often one step behind when it comes to adapting to new technology," Finance Minister Herve Ndoba said last week, as quoted in Bloomberg. "This time, we can actually say that our country is one step ahead." The Central African Republic has a population of 4.83 million people, with roughly 11% having an internet connection. El Salvador was the first country to recognise Bitcoin as legal cash less than a year ago. Citizens of the Central American country were allowed to use the digital currency to pay for any good or service using a cyber wallet app, alongside the US dollar, which has been the official currency for the past two decades. The International Monetary Fund (IMF) slammed the introduction. It warned of "significant dangers connected with bitcoin's use in financial stability, financial integrity, and consumer protection," as well as the risks of issuing bitcoin-backed bonds. WATCH WION LIVE HERE (With inputs from agencies)

Central African Republic adopts bitcoin as legal currency

The Cuban government in an official directive asked those who wished to use cryptocurrencies to get a license as it approved cryptocurrency-related services.

The government had made the use of cryptocurrencies for personal use legal in the country last year. The government said it would grant a license for up to a year and it can be extended for another year amid large scale interest in the country to use the virtual currency.

<a href="https://www.wionews.com/technology/the-price-of-love-cryptocurrency-scammers-target-dating-apps-466384">Also Read |&nbsp;The price of love: Cryptocurrency scammers target dating apps</a>

Reports claim the adoption of cryptocurrencies would help Cuba to skirt US sanctions as it battles an economic crisis. The country's central bank has been granted the right to issue licenses with the new rule set to come into effect in May.

The central bank will consider licenses after evaluating the "legality, opportunity and socioeconomic interest of the initiative" the government directive said. Local and foreign companies without a legal license could face sanctions, reports said.

Watch:&nbsp;Cuba approves cryptocurrency services

<div class="videoWrapper trancodeVideo"> 
Th<iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/cuba-approves-cryptocurrency-services-474541/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The country depends heavily on remittances sent by Cubans in the United States, however, economic sanctions against the country have hit remittances&nbsp;as reports claim cryptocurrencies could help Cuba in the current crisis.

(With inputs from Agencies)

Watch WION LIVE here

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

The Cuban government in an official directive asked those who wished to use cryptocurrencies to get a license as it approved cryptocurrency-related services. The government had made the use of cryptocurrencies for personal use legal in the country last year.

The Cuban government in an official directive asked those who wished to use cryptocurrencies to get a license as it approved cryptocurrency-related services. The government had made the use of cryptocurrencies for personal use legal in the country last year. The government said it would grant a license for up to a year and it can be extended for another year amid large scale interest in the country to use the virtual currency. Also Read | The price of love: Cryptocurrency scammers target dating apps Reports claim the adoption of cryptocurrencies would help Cuba to skirt US sanctions as it battles an economic crisis. The country's central bank has been granted the right to issue licenses with the new rule set to come into effect in May. The central bank will consider licenses after evaluating the "legality, opportunity and socioeconomic interest of the initiative" the government directive said. Local and foreign companies without a legal license could face sanctions, reports said. Watch: Cuba approves cryptocurrency services Th The country depends heavily on remittances sent by Cubans in the United States, however, economic sanctions against the country have hit remittances as reports claim cryptocurrencies could help Cuba in the current crisis. (With inputs from Agencies) Watch WION LIVE here

Cuba approves cryptocurrency services

Bitcoin has dropped 5.3 percent to $39,881. The world's biggest and best-known cryptocurrency is down 7.3 percent from the year's high of $48,234 on March 28. The price was also down as investors assessed the risks from rising rates and the potential for more tightening by Federal Reserve

Bitcoin falls 5.3 percent to $39,881, Crypto below $40,000 first time in a month

Amid a boom in digital asset trading, Indonesia plans to impose tax on crypto trading and investments.

The government plans to charge value-added tax (VAT) on crypto asset transactions and income tax on capital gains from investments at 0.1 per cent each.

Reports claim Indonesia has over 11 million crypto asset holders. The country has witnessed a surge in crypto transactions as the commodity futures markets touched an astronomical $59.8 billion amid regulatory support from government bodies.

<a href="https://www.wionews.com/technology/625-million-in-ether-stolen-in-one-of-the-biggest-crypto-heists-466848">Also Read:&nbsp;$625 million in Ether stolen in one of the biggest crypto heists</a>

Indonesians are not allowed to make payments in cryptocurrency however they are allowed to trade in&nbsp;crypto assets as a commodity. According to a study, Indonesia's crypto assets ownership is one of the highest in the world. Investors in the country have reportedly been using cryptos to protect themselves from inflation.

Watch:&nbsp;Crypto romance scams: Don't fall for dating app swindlers

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/crypto-romance-scams-dont-fall-for-dating-app-swindlers-466445/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

A report claims 41 per cent of Indonesians aged between 18 and 75 with an annual income of over $14,000 own crypto assets with most Indonesians convinced that crypto is the future of money.

Bitcoin, Ethereum and Solana have gained traction in the country as the Indonesian government eyes a digital economy even as crypto investors have doubled in the last two years.&nbsp;

According to Indonesia's trade ministry, Bitcoin transactions grew 14 times from $4.1 billion in 2020 to $59.83 billion in 2021. A body under the trade ministry called Commodity Futures Trading Regulatory Agency (BAPPEBTI) oversees cryptocurrency trading in the country.

(With inputs from Agencies)

Amid a boom in digital asset trading, Indonesia plans to impose tax on crypto trading and investments. The government plans to charge value-added tax (VAT) on crypto asset transactions and income tax on capital gains from investments at 0.

Amid a boom in digital asset trading, Indonesia plans to impose tax on crypto trading and investments. The government plans to charge value-added tax (VAT) on crypto asset transactions and income tax on capital gains from investments at 0.1 per cent each. Reports claim Indonesia has over 11 million crypto asset holders. The country has witnessed a surge in crypto transactions as the commodity futures markets touched an astronomical $59.8 billion amid regulatory support from government bodies. Also Read: $625 million in Ether stolen in one of the biggest crypto heists Indonesians are not allowed to make payments in cryptocurrency however they are allowed to trade in crypto assets as a commodity. According to a study, Indonesia's crypto assets ownership is one of the highest in the world. Investors in the country have reportedly been using cryptos to protect themselves from inflation. Watch: Crypto romance scams: Don't fall for dating app swindlers A report claims 41 per cent of Indonesians aged between 18 and 75 with an annual income of over $14,000 own crypto assets with most Indonesians convinced that crypto is the future of money. Bitcoin, Ethereum and Solana have gained traction in the country as the Indonesian government eyes a digital economy even as crypto investors have doubled in the last two years. According to Indonesia's trade ministry, Bitcoin transactions grew 14 times from $4.1 billion in 2020 to $59.83 billion in 2021. A body under the trade ministry called Commodity Futures Trading Regulatory Agency (BAPPEBTI) oversees cryptocurrency trading in the country. (With inputs from Agencies)

Amid boom, Indonesia plans to tax crypto assets

It can not be denied that Bitcoin singlehandedly popularised the concept of cryptocurrency and huge rise in its prize since its inception means that Bitcoin mining is now a widespread endevour.

But mining Bitcoins requires one to have a large array of computers the computing power of which is then harnessed to tackle extremely complex cryptographic puzzles during the process of mining. These understandably consumes a lot of energy and leaves a huge carbon footprint.&nbsp;

Several environmental organisation have come together to launch a campaign that says a small tweak in Bitcoin mining method may considerably reduce the huge energy requirement and carbon footprint of the mining. The campaign 'Change the Code Not the Climate' has been launched by Environmental Working Group, Greenpeace USA and several other groups that are battling Bitcoin mining facilities.

The 'Proof of work', the software code that is used in Bitcoin mining.

Rival cryptocurrency Ethereum or Ether is planning a shift to another system called "proof of stake". It is believed that such a shift would bring the energy requirement to mine Ethereum down by 99 per cent.

The campaign launched by the environmental organisations is urging Bitcoin miners to take a similar step and help save the environment

It can not be denied that Bitcoin singlehandedly popularised the concept of cryptocurrency and huge rise in its prize since its inception means that Bitcoin mining is now a widespread endevour.

It can not be denied that Bitcoin singlehandedly popularised the concept of cryptocurrency and huge rise in its prize since its inception means that Bitcoin mining is now a widespread endevour. But mining Bitcoins requires one to have a large array of computers the computing power of which is then harnessed to tackle extremely complex cryptographic puzzles during the process of mining. These understandably consumes a lot of energy and leaves a huge carbon footprint. Several environmental organisation have come together to launch a campaign that says a small tweak in Bitcoin mining method may considerably reduce the huge energy requirement and carbon footprint of the mining. The campaign 'Change the Code Not the Climate' has been launched by Environmental Working Group, Greenpeace USA and several other groups that are battling Bitcoin mining facilities. The 'Proof of work', the software code that is used in Bitcoin mining. Rival cryptocurrency Ethereum or Ether is planning a shift to another system called "proof of stake". It is believed that such a shift would bring the energy requirement to mine Ethereum down by 99 per cent. The campaign launched by the environmental organisations is urging Bitcoin miners to take a similar step and help save the environment

Campaign pushes for change in Bitcoin mining method to save environment

Climate groups have claimed that altering codes can reduce bitcoin energy consumption by 99 per cent as a campaign called Change the Code Not the Climate.

The campaign is coordinated by the Environmental Working Group, Greenpeace USA, and several groups battling bitcoin mining facilities in their communities.

An obstacle to large-scale bitcoin mining is finding enough cheap energy to run the huge, power-gobbling computer arrays that create and transact cryptocurrency.&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/how-cryptocurrency-scammers-use-dating-apps-to-steal-your-money-tech-it-out-466584/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Bitcoin mining, in simple terms, is the process by which a network of computers checks and validates a block of transactions that then get added to the blockchain. Miners get rewarded for completing a block.

Bitcoin miners unlock bitcoins by solving complex, unique puzzles. As the value of Bitcoin goes up, the puzzles become increasingly more difficult, and it requires more computer power to solve them. Estimates on how much energy Bitcoin uses vary.

It's an expensive business, though, requiring not just sophisticated and fast "rigs" costing upwards of $10,000, but also a huge amount of power. And it's getting pricier.

The seven-day average of total mining cost per transaction validated has fallen to $176.8 from a record $235.57 hit in May last year, data from blockchain.com shows.

"As more miners join the network, each individually earns fewer bitcoin. This is because network difficulty increases in order to slow the issuance of new bitcoin," said Joe Burnett, analyst at infrastructure and mining firm Blockware Solutions.

<a href="https://www.wionews.com/photos/how-much-tax-is-imposed-on-cryptocurrency-in-different-countries-worldwide-449585">Also see |&nbsp;How much tax is imposed on cryptocurrency in different countries worldwide?</a>

Waning mining profitability is also hitting the broader market because some institutional investors, who are unable or unwilling to invest directly in cryptocurrencies, instead buy shares of listed miners or ETFs that track miners as an alternative way of gaining access to the young industry.

Some of the pressures on miners flow from bitcoin's inherent structure. The decentralised blockchain was created anonymously with a final limit of 21 million coins, of which nearly 19 million has already been minted.

It takes around 10 minutes to mine one block and the reward for miners, who currently get 6.25 bitcoin per block, is halved about every four years.

"There could be one miner or a million, it doesn't change anything. There's only one block and a set number of bitcoins issued," said d'Anethan at Amber Group.

“This is a big problem. In part because of where the industry stands now but also because of our concerns about its growth,” said Michael Brune, campaign director and former executive director of Sierra Club.

“Coal plants which were dormant or slated to be closed are now being revived and solely dedicated to bitcoin mining. Gas plants, which in many cases were increasingly economically uncompetitive, are also now being dedicated to bitcoin mining. We are seeing this all across the country,” said Brune.

Brune added: “It’s particularly painful to see this in the electric sector because that is precisely the place where the US has made most of its progress in the last decade,” he said.&nbsp;

''There’s no way we can reach our climate goals if we are reviving fossil fuel plants.''

(With inputs from agencies)

Climate groups have claimed that altering codes can reduce bitcoin energy consumption by 99 per cent as a campaign called Change the Code Not the Climate. The campaign is coordinated by the Environmental Working Group, Greenpeace USA, and several groups battling bitcoin mining facilities in their communities.

Climate groups have claimed that altering codes can reduce bitcoin energy consumption by 99 per cent as a campaign called Change the Code Not the Climate. The campaign is coordinated by the Environmental Working Group, Greenpeace USA, and several groups battling bitcoin mining facilities in their communities. An obstacle to large-scale bitcoin mining is finding enough cheap energy to run the huge, power-gobbling computer arrays that create and transact cryptocurrency. Bitcoin mining, in simple terms, is the process by which a network of computers checks and validates a block of transactions that then get added to the blockchain. Miners get rewarded for completing a block. Bitcoin miners unlock bitcoins by solving complex, unique puzzles. As the value of Bitcoin goes up, the puzzles become increasingly more difficult, and it requires more computer power to solve them. Estimates on how much energy Bitcoin uses vary. It's an expensive business, though, requiring not just sophisticated and fast "rigs" costing upwards of $10,000, but also a huge amount of power. And it's getting pricier. The seven-day average of total mining cost per transaction validated has fallen to $176.8 from a record $235.57 hit in May last year, data from blockchain.com shows. "As more miners join the network, each individually earns fewer bitcoin. This is because network difficulty increases in order to slow the issuance of new bitcoin," said Joe Burnett, analyst at infrastructure and mining firm Blockware Solutions. Also see | How much tax is imposed on cryptocurrency in different countries worldwide? Waning mining profitability is also hitting the broader market because some institutional investors, who are unable or unwilling to invest directly in cryptocurrencies, instead buy shares of listed miners or ETFs that track miners as an alternative way of gaining access to the young industry. Some of the pressures on miners flow from bitcoin's inherent structure. The decentralised blockchain was created anonymously with a final limit of 21 million coins, of which nearly 19 million has already been minted. It takes around 10 minutes to mine one block and the reward for miners, who currently get 6.25 bitcoin per block, is halved about every four years. "There could be one miner or a million, it doesn't change anything. There's only one block and a set number of bitcoins issued," said d'Anethan at Amber Group. “This is a big problem. In part because of where the industry stands now but also because of our concerns about its growth,” said Michael Brune, campaign director and former executive director of Sierra Club. “Coal plants which were dormant or slated to be closed are now being revived and solely dedicated to bitcoin mining. Gas plants, which in many cases were increasingly economically uncompetitive, are also now being dedicated to bitcoin mining. We are seeing this all across the country,” said Brune. Brune added: “It’s particularly painful to see this in the electric sector because that is precisely the place where the US has made most of its progress in the last decade,” he said. ''There’s no way we can reach our climate goals if we are reviving fossil fuel plants.'' (With inputs from agencies)

Altering code can reduce bitcoin energy consumption by 99%, say climate groups

Battered with sanctions for initiating war against Ukraine, Russia is now mulling to accept Bitcoins as a payment for oil and gas exports.

In a news conference on Thursday, Russian lawmaker Pavel Zavalny reportedly said that it is willing to be flexible with payments when it comes to “friendly” countries such as China or Turkey.

Zavalny, who is also the chair of Russia’s Duma committee on energy, said that the national fiat currency of the buyer, as well as Bitcoin, were being considered as alternative ways to pay for Russia’s energy exports.

"We have been proposing to China for a long time to switch to settlements in national currencies for rubles and&nbsp;yuan," Zavalny said, according to the translation. \

"With Turkey, it will be lira and rubles." "You can also trade bitcoins," he added.

The price of the cryptocurrency reportedly spiked when the news reports of Zavalny’s remarks first came up yesterday.

The remarks come a day after Russian President Vladimir Putin said Moscow will accept only rubles as payments for gas exports from “unfriendly nations”.

Also read |&nbsp;<a href="https://www.wionews.com/world/eu-us-sign-mega-lng-deal-in-an-attempt-to-curb-reliance-on-sanctions-hit-russia-465514" hreflang="en">EU, US sign mega LNG deal to curb reliance on sanctions-hit Russia</a>

The list of countries includes the United States, European Union member states, Britain, Japan, Canada, Norway, Singapore, South Korea, Switzerland and Ukraine.

Echoing Putin’s remarks, Zavalny said, “If they want to buy, let them pay either in hard currency, and this is gold for us, or pay as it is convenient for us, this is the national currency.”

Also read |&nbsp;<a href="https://www.wionews.com/world/putin-says-will-accept-only-rubles-for-gas-sales-to-unfriendly-nations-464927">Putin says will accept only rubles for gas sales to ‘unfriendly nations’</a>

Energy is the single most important source of income for Russia. In 2021, the oil and gas trade brought in $119 billion in revenue for the country, according to&nbsp;Reuters.

Russia has been looking for an alternative payment system mechanism ever since it was&nbsp;blocked from using the international&nbsp;SWIFT payment system.

Earlier this week, European Central Bank President Christine Lagarde highlighted that the Russian private sector is&nbsp;using crypto to bypass Western sanctions.

Watch |&nbsp;Ukraine-Russia conflict: Putin says Russia to only take gas payments in rubles

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/ukraine-russia-conflict-putin-says-russia-to-only-take-gas-payments-in-roubles-465041/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

(With inputs from agencies)

Battered with sanctions for initiating war against Ukraine, Russia is now mulling to accept Bitcoins as a payment for oil and gas exports. In a news conference on Thursday, Russian lawmaker Pavel Zavalny reportedly said that it is willing to be flexible with payments when it comes to “friendly” countries such as China or Turkey.

Battered with sanctions for initiating war against Ukraine, Russia is now mulling to accept Bitcoins as a payment for oil and gas exports. In a news conference on Thursday, Russian lawmaker Pavel Zavalny reportedly said that it is willing to be flexible with payments when it comes to “friendly” countries such as China or Turkey. Zavalny, who is also the chair of Russia’s Duma committee on energy, said that the national fiat currency of the buyer, as well as Bitcoin, were being considered as alternative ways to pay for Russia’s energy exports. "We have been proposing to China for a long time to switch to settlements in national currencies for rubles and yuan," Zavalny said, according to the translation. \ "With Turkey, it will be lira and rubles." "You can also trade bitcoins," he added. The price of the cryptocurrency reportedly spiked when the news reports of Zavalny’s remarks first came up yesterday. The remarks come a day after Russian President Vladimir Putin said Moscow will accept only rubles as payments for gas exports from “unfriendly nations”. Also read | EU, US sign mega LNG deal to curb reliance on sanctions-hit Russia The list of countries includes the United States, European Union member states, Britain, Japan, Canada, Norway, Singapore, South Korea, Switzerland and Ukraine. Echoing Putin’s remarks, Zavalny said, “If they want to buy, let them pay either in hard currency, and this is gold for us, or pay as it is convenient for us, this is the national currency.” Also read | Putin says will accept only rubles for gas sales to ‘unfriendly nations’ Energy is the single most important source of income for Russia. In 2021, the oil and gas trade brought in $119 billion in revenue for the country, according to Reuters. Russia has been looking for an alternative payment system mechanism ever since it was blocked from using the international SWIFT payment system. Earlier this week, European Central Bank President Christine Lagarde highlighted that the Russian private sector is using crypto to bypass Western sanctions. Watch | Ukraine-Russia conflict: Putin says Russia to only take gas payments in rubles (With inputs from agencies)

Russian lawmaker says considering Bitcoin payments for oil exports from ‘friendly’ nations

As the Russian-Ukraine war&nbsp;rages on, several donation pages have emerged in the dark web asking for funds in cryptocurrencies for the Ukrainian cause.

Check Point Research, the threat intelligence arm of the cybersecurity solutions provider, has reported that while some are running genuine donation&nbsp;services, many fake ads have flooded the dark web.

The darknet is a part of the internet that is invisible to search engines and can only be accessed through anonymous browsers.

Several prominent organisations like BBC and Twitter have been using the dark web to bring regular updates to Russia as their services have been restricted in the wake of the Russian invasion of Ukraine.

However, in the midst of all these, several scammers have been running fake donation camps to collect money with&nbsp;‘Help Ukraine’ advertisements.

“CPR has always taken a close look at the Darknet. Last year, we found advertisements for fake coronavirus services. Now, we’re seeing donation scams appear on the Darknet, as the Russia-Ukraine conflict intensifies," says Oded Vanunu, head of product vulnerabilities research at Check Point Software.

One such ad featured a mother and her children, who were in bad shape and needed money to escape the war-torn country. However, the image was unrelated and was taken out of context from a German newspaper, Vanunu said.

It said that sites such as Defend Ukraine, and an accompanying Twitter account has been found to be reliable.

The website contains a list of organisations and NGOs in Ukraine in need of assistance and solicits donations in both bitcoin and ethereum. It has received over $9m in funding since being registered in February 2022.

As the Russian-Ukraine war rages on, several donation pages have emerged in the dark web asking for funds in cryptocurrencies for the Ukrainian cause. Check Point Research, the threat intelligence arm of the cybersecurity solutions provider, has reported that while some are running genuine donation services, many fake ads have flooded the dark web.

As the Russian-Ukraine war rages on, several donation pages have emerged in the dark web asking for funds in cryptocurrencies for the Ukrainian cause. Check Point Research, the threat intelligence arm of the cybersecurity solutions provider, has reported that while some are running genuine donation services, many fake ads have flooded the dark web. The darknet is a part of the internet that is invisible to search engines and can only be accessed through anonymous browsers. Several prominent organisations like BBC and Twitter have been using the dark web to bring regular updates to Russia as their services have been restricted in the wake of the Russian invasion of Ukraine. However, in the midst of all these, several scammers have been running fake donation camps to collect money with ‘Help Ukraine’ advertisements. “CPR has always taken a close look at the Darknet. Last year, we found advertisements for fake coronavirus services. Now, we’re seeing donation scams appear on the Darknet, as the Russia-Ukraine conflict intensifies," says Oded Vanunu, head of product vulnerabilities research at Check Point Software. One such ad featured a mother and her children, who were in bad shape and needed money to escape the war-torn country. However, the image was unrelated and was taken out of context from a German newspaper, Vanunu said. It said that sites such as Defend Ukraine, and an accompanying Twitter account has been found to be reliable. The website contains a list of organisations and NGOs in Ukraine in need of assistance and solicits donations in both bitcoin and ethereum. It has received over $9m in funding since being registered in February 2022.

Cashing in on Ukrainian war: Scammers running crypto scam on dark web, says report

When the United States barred Americans from doing business with Russian banks, oil and gas developers and other companies in 2014, after the country’s invasion of Crimea, the hit to Russia’s economy was swift and immense. Economists estimated that sanctions imposed by Western nations cost Russia $50 billion a year.

Since then, the global market for cryptocurrencies and other digital assets has ballooned. That is bad news for enforcers of sanctions and good news for Russia.

On Tuesday, the Biden administration enacted fresh sanctions on Russia over the conflict in Ukraine, aiming to thwart its access to foreign capital. But Russian entities are preparing to blunt some of the worst effects by making deals with anyone around the world willing to work with them, experts said. And, they say, those entities can then use digital currencies to bypass the control points that governments rely on — mainly transfers of money by banks — to block deal execution.

“Russia has had a lot of time to think about this specific consequence,” said Michael Parker, a former federal prosecutor who now heads the anti-money laundering and sanctions practice at Washington, D.C., law firm Ferrari &amp; Associates. “It would be naive to think that they haven’t gamed out exactly this scenario.”

Sanctions are some of the most powerful tools the United States and European countries have to influence the behavior of nations they don’t consider allies. The United States in particular is able to use sanctions as a diplomatic tool because the dollar is the world’s reserve currency and used in payments worldwide. But American government officials are increasingly aware of the potential for cryptocurrencies to lessen the impact of sanctions and are stepping up their scrutiny of digital assets.

To apply sanctions, a government makes a list of people and businesses its citizens must avoid. Anyone caught engaging with a member of the list faces heavy fines. But the real key to any effective sanctions program is the global financial system. Banks around the world play a major role in enforcement: They see where money comes from and where it is bound, and anti-money laundering laws require them to block transactions with sanctioned entities and report what they see to authorities. But if banks are the eyes and ears of governments in this space, the explosion of digital currencies is blinding them.

Banks have to abide by “know your customer” rules, which include verifying their clients’ identities. But exchanges and other platforms that facilitate the buying and selling of cryptocurrencies and digital assets are rarely as good at tracking their customers as banks are, even though they are supposed to follow the same rules. In October, the U.S. Treasury Department warned that cryptocurrencies posed an increasingly serious threat to the U.S. sanctions program and that U.S. authorities needed to educate themselves about the technology.

Should it choose to evade sanctions, Russia has multiple cryptocurrency-related tools at its disposal, experts said. All it needs is to find ways to trade without touching the dollar.

The Russian government is developing its own central bank digital currency, a so-called digital ruble that it hopes to use to trade directly with other countries willing to accept it without first converting it into dollars. Hacking techniques like ransomware could help Russian actors steal digital currencies and make up revenue lost to sanctions.

And while cryptocurrency transactions are recorded on the underlying blockchain, making them transparent, new tools developed in Russia can help mask the origin of such transactions. That would allow businesses to trade with Russian entities without detection.

There is a precedent for these kinds of workarounds. Iran and North Korea are among countries that have used digital currencies to mitigate the effects of Western sanctions, a trend that U.S. and United Nations officials have recently observed. North Korea, for instance, has used ransomware to steal cryptocurrency to fund its nuclear program, according to a U.N. report.

In October 2020, representatives of Russia’s central bank told a Moscow newspaper that the new “digital ruble” would make the country less dependent on the United States and better able to resist sanctions. It would let Russian entities conduct transactions outside the international banking system with any country willing to trade in digital currency.

Russia could find willing partners in other nations targeted by U.S. sanctions, including Iran, that are also developing government-backed digital currencies. China, Russia’s largest trading partner in both imports and exports according to the World Bank, has already launched its own central bank digital currency. The country’s leader, Xi Jinping, recently described China’s relationship with Russia as having “no limits.”

The developing system of central banks directly exchanging digital currencies creates new risks, said Yaya Fanusie, a fellow at the Center for a New American Security who has studied the effects of cryptocurrency on sanctions. “The lessening of U.S. sanctions power comes from a system where these nation states are able to do transactions without going through the global banking system.”

In early February, independent sanctions monitors told the U.N. Security Council that North Korea was using cryptocurrencies to fund its nuclear and ballistic missile program, according to Reuters. (A spokesperson for Norway’s permanent mission to the U.N. confirmed the existence of the report, which has not yet been made public.) In May, consulting firm Elliptic described how Iran was using revenue from Bitcoin mining to make up for the limitations on its ability to sell oil because of sanctions.

Sanctioned Russian entities could deploy their own evasion strategy, using ransomware attacks. The playbook is straightforward: A hacker breaks into computer networks and locks up digital information until the victim pays for its release, usually in cryptocurrency.

Russia is at the center of the growing ransomware industry. Last year, about 74% of global ransomware revenue, or more than $400 million worth of cryptocurrency, went to entities that are probably affiliated with Russia in some way, according to a Feb. 14 report by blockchain-tracking firm Chainalysis.

Illegal funds have also flowed into Russia through a dark web marketplace called Hydra, which is powered by cryptocurrency and handled more than $1 billion in sales in 2020, according to Chainalysis. The platform’s strict rules — sellers are allowed to liquidate cryptocurrency only through certain regional exchanges — have made it difficult for researchers to follow the money.

“We know that there’s no questions asked, and we know that Hydra operates not just throughout Eastern Europe but throughout western Europe,” said Kim Grauer, director of research at Chainalysis. “There’s definitely cross-border business happening.”

Digital currencies all use blockchain technology, a form of computer code that is publicly viewable by anyone, anywhere. This public ledger keeps track of the movements of individual digital coins from one “wallet” — as online repositories for digital assets are called — to another. In theory, this should let authorities track all crypto transactions and keep sanctioned entities from completing them.

But the technology behind Hydra masks the source of transactions, offering a potential tool for Russian users to move money outside the country’s borders. On its own, Hydra is not yet big enough to handle the volume of transactions that Russia would need to successfully evade sanctions. But other money-laundering techniques — including “nesting,” in which an illicit marketplace buries itself within a larger, legitimate structure to hide its activities — could also help.

There are signs that the United States is stepping up its monitoring of cryptocurrency activity. On Feb. 17, the Justice Department announced it had created a new national cryptocurrency enforcement team, a move that seemed to emphasize that federal prosecutors were paying extra attention to bad behavior among cryptocurrency users.

Parker, the former prosecutor, said that the Feb. 8 arrests of a Manhattan couple for stealing $3.6 billion in Bitcoin from Hong Kong cryptocurrency exchange Bitfinex is “a tangible example of the government getting very good and up to speed on what they need to do to be able to trace this.”

Administration officials are also urging the cryptocurrency industry to implement internal controls that prevent bad actors from using their services. In October, the Treasury Department published a 30-page sanctions-compliance manual recommending that cryptocurrency companies use geolocation tools to weed out customers in sanctioned jurisdictions. In many cases, the report said, crypto companies have taken months or years to implement such compliance procedures.

That may change as the industry starts to mature. Chainalysis offers a “know your transaction” tool that alerts companies when blacklisted entities use their services. Last year, the company doubled its number of private-sector customers, many of whom use the compliance tool.

But savvy cryptocurrency users can find ways around a blacklist.

“A Treasury designation of a crypto wallet address is not foolproof,” said Fanusie of the Center for a New American Security. “That designated actor can still open up a new wallet elsewhere. You can do that quite easily.”

When the United States barred Americans from doing business with Russian banks, oil and gas developers and other companies in 2014, after the country’s invasion of Crimea, the hit to Russia’s economy was swift and immense.

When the United States barred Americans from doing business with Russian banks, oil and gas developers and other companies in 2014, after the country’s invasion of Crimea, the hit to Russia’s economy was swift and immense. Economists estimated that sanctions imposed by Western nations cost Russia $50 billion a year. Since then, the global market for cryptocurrencies and other digital assets has ballooned. That is bad news for enforcers of sanctions and good news for Russia. On Tuesday, the Biden administration enacted fresh sanctions on Russia over the conflict in Ukraine, aiming to thwart its access to foreign capital. But Russian entities are preparing to blunt some of the worst effects by making deals with anyone around the world willing to work with them, experts said. And, they say, those entities can then use digital currencies to bypass the control points that governments rely on — mainly transfers of money by banks — to block deal execution. “Russia has had a lot of time to think about this specific consequence,” said Michael Parker, a former federal prosecutor who now heads the anti-money laundering and sanctions practice at Washington, D.C., law firm Ferrari & Associates. “It would be naive to think that they haven’t gamed out exactly this scenario.” Sanctions are some of the most powerful tools the United States and European countries have to influence the behavior of nations they don’t consider allies. The United States in particular is able to use sanctions as a diplomatic tool because the dollar is the world’s reserve currency and used in payments worldwide. But American government officials are increasingly aware of the potential for cryptocurrencies to lessen the impact of sanctions and are stepping up their scrutiny of digital assets. To apply sanctions, a government makes a list of people and businesses its citizens must avoid. Anyone caught engaging with a member of the list faces heavy fines. But the real key to any effective sanctions program is the global financial system. Banks around the world play a major role in enforcement: They see where money comes from and where it is bound, and anti-money laundering laws require them to block transactions with sanctioned entities and report what they see to authorities. But if banks are the eyes and ears of governments in this space, the explosion of digital currencies is blinding them. Banks have to abide by “know your customer” rules, which include verifying their clients’ identities. But exchanges and other platforms that facilitate the buying and selling of cryptocurrencies and digital assets are rarely as good at tracking their customers as banks are, even though they are supposed to follow the same rules. In October, the U.S. Treasury Department warned that cryptocurrencies posed an increasingly serious threat to the U.S. sanctions program and that U.S. authorities needed to educate themselves about the technology. Should it choose to evade sanctions, Russia has multiple cryptocurrency-related tools at its disposal, experts said. All it needs is to find ways to trade without touching the dollar. The Russian government is developing its own central bank digital currency, a so-called digital ruble that it hopes to use to trade directly with other countries willing to accept it without first converting it into dollars. Hacking techniques like ransomware could help Russian actors steal digital currencies and make up revenue lost to sanctions. And while cryptocurrency transactions are recorded on the underlying blockchain, making them transparent, new tools developed in Russia can help mask the origin of such transactions. That would allow businesses to trade with Russian entities without detection. There is a precedent for these kinds of workarounds. Iran and North Korea are among countries that have used digital currencies to mitigate the effects of Western sanctions, a trend that U.S. and United Nations officials have recently observed. North Korea, for instance, has used ransomware to steal cryptocurrency to fund its nuclear program, according to a U.N. report. In October 2020, representatives of Russia’s central bank told a Moscow newspaper that the new “digital ruble” would make the country less dependent on the United States and better able to resist sanctions. It would let Russian entities conduct transactions outside the international banking system with any country willing to trade in digital currency. Russia could find willing partners in other nations targeted by U.S. sanctions, including Iran, that are also developing government-backed digital currencies. China, Russia’s largest trading partner in both imports and exports according to the World Bank, has already launched its own central bank digital currency. The country’s leader, Xi Jinping, recently described China’s relationship with Russia as having “no limits.” The developing system of central banks directly exchanging digital currencies creates new risks, said Yaya Fanusie, a fellow at the Center for a New American Security who has studied the effects of cryptocurrency on sanctions. “The lessening of U.S. sanctions power comes from a system where these nation states are able to do transactions without going through the global banking system.” In early February, independent sanctions monitors told the U.N. Security Council that North Korea was using cryptocurrencies to fund its nuclear and ballistic missile program, according to Reuters. (A spokesperson for Norway’s permanent mission to the U.N. confirmed the existence of the report, which has not yet been made public.) In May, consulting firm Elliptic described how Iran was using revenue from Bitcoin mining to make up for the limitations on its ability to sell oil because of sanctions. Sanctioned Russian entities could deploy their own evasion strategy, using ransomware attacks. The playbook is straightforward: A hacker breaks into computer networks and locks up digital information until the victim pays for its release, usually in cryptocurrency. Russia is at the center of the growing ransomware industry. Last year, about 74% of global ransomware revenue, or more than $400 million worth of cryptocurrency, went to entities that are probably affiliated with Russia in some way, according to a Feb. 14 report by blockchain-tracking firm Chainalysis. Illegal funds have also flowed into Russia through a dark web marketplace called Hydra, which is powered by cryptocurrency and handled more than $1 billion in sales in 2020, according to Chainalysis. The platform’s strict rules — sellers are allowed to liquidate cryptocurrency only through certain regional exchanges — have made it difficult for researchers to follow the money. “We know that there’s no questions asked, and we know that Hydra operates not just throughout Eastern Europe but throughout western Europe,” said Kim Grauer, director of research at Chainalysis. “There’s definitely cross-border business happening.” Digital currencies all use blockchain technology, a form of computer code that is publicly viewable by anyone, anywhere. This public ledger keeps track of the movements of individual digital coins from one “wallet” — as online repositories for digital assets are called — to another. In theory, this should let authorities track all crypto transactions and keep sanctioned entities from completing them. But the technology behind Hydra masks the source of transactions, offering a potential tool for Russian users to move money outside the country’s borders. On its own, Hydra is not yet big enough to handle the volume of transactions that Russia would need to successfully evade sanctions. But other money-laundering techniques — including “nesting,” in which an illicit marketplace buries itself within a larger, legitimate structure to hide its activities — could also help. There are signs that the United States is stepping up its monitoring of cryptocurrency activity. On Feb. 17, the Justice Department announced it had created a new national cryptocurrency enforcement team, a move that seemed to emphasize that federal prosecutors were paying extra attention to bad behavior among cryptocurrency users. Parker, the former prosecutor, said that the Feb. 8 arrests of a Manhattan couple for stealing $3.6 billion in Bitcoin from Hong Kong cryptocurrency exchange Bitfinex is “a tangible example of the government getting very good and up to speed on what they need to do to be able to trace this.” Administration officials are also urging the cryptocurrency industry to implement internal controls that prevent bad actors from using their services. In October, the Treasury Department published a 30-page sanctions-compliance manual recommending that cryptocurrency companies use geolocation tools to weed out customers in sanctioned jurisdictions. In many cases, the report said, crypto companies have taken months or years to implement such compliance procedures. That may change as the industry starts to mature. Chainalysis offers a “know your transaction” tool that alerts companies when blacklisted entities use their services. Last year, the company doubled its number of private-sector customers, many of whom use the compliance tool. But savvy cryptocurrency users can find ways around a blacklist. “A Treasury designation of a crypto wallet address is not foolproof,” said Fanusie of the Center for a New American Security. “That designated actor can still open up a new wallet elsewhere. You can do that quite easily.”

Russia could use cryptocurrency to blunt the force of US sanctions

President Nayib Bukele on Wednesday asked&nbsp;US&nbsp;senators&nbsp;to&nbsp;stay&nbsp;out&nbsp;of&nbsp;El&nbsp;Salvador's&nbsp;"internal&nbsp;affairs" after they called for an investigation into the economic risks the United States faces due to the Central American country's adoption of&nbsp;bitcoin&nbsp;as legal tender.

Senators&nbsp;Jim Risch, Bill Cassidy and Bob Mendez asked the State Department to submit a report on the implementation of&nbsp;bitcoin&nbsp;in&nbsp;El&nbsp;Salvador with the purpose of assessing the risks it poses to the&nbsp;US&nbsp;economy.

"Ok boomers… You have 0 jurisdiction on a sovereign and independent nation," Bukele, 40, said in a tweet, referring to the older generation of "baby boomers".

"We are not your colony, your back yard or your front yard.&nbsp;Stay&nbsp;out&nbsp;of our&nbsp;internal&nbsp;affairs. Don’t try to control something you can’t control."

Also read |&nbsp;<a href="https://www.wionews.com/world/three-women-convicted-of-abortion-finally-freed-in-el-salvador-440011">Three women convicted of abortion finally freed in El Salvador</a>

El&nbsp;Salvador was the first country in the world to adopt cryptocurrency for official use, in parallel&nbsp;to the&nbsp;US&nbsp;dollar, a decision that has drawn it harsh criticism from the International Monetary Fund (IMF).

The&nbsp;US&nbsp;senators&nbsp;also expressed fear over the fact that adopting&nbsp;bitcoin&nbsp;could weaken the&nbsp;US&nbsp;government's sanctions policy and increase the activity of criminal organizations.

"This new policy has the potential to weaken&nbsp;US&nbsp;sanctions policy, empowering malign actors like China and organized criminal organizations. Our bipartisan legislation seeks greater clarity on&nbsp;El&nbsp;Salvador’s policy," said the&nbsp;senators&nbsp;in a statement.

Watch |&nbsp;El Salvador's president Nayib Bukele Plans World's First Bitcoin City

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/el-salvadors-president-nayib-bukele-plans-worlds-first-bitcoin-city-431120/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The Salvadoran government, which has acquired some 1,801&nbsp;bitcoins since September, has been questioned by economists and the opposition for its refusal to be accountable in the process of buying and managing the funds.

Diplomatic relations between&nbsp;El&nbsp;Salvador and the United States have deteriorated after the White House denounced publicly cases of corruption in Bukele's government and an escalation of measures to accumulate power.

President Nayib Bukele on Wednesday asked US senators to stay out of El Salvador's "internal affairs" after they called for an investigation into the economic risks the United States faces due to the Central American country's adoption of bitcoin as legal tender.

President Nayib Bukele on Wednesday asked US senators to stay out of El Salvador's "internal affairs" after they called for an investigation into the economic risks the United States faces due to the Central American country's adoption of bitcoin as legal tender. Senators Jim Risch, Bill Cassidy and Bob Mendez asked the State Department to submit a report on the implementation of bitcoin in El Salvador with the purpose of assessing the risks it poses to the US economy. "Ok boomers… You have 0 jurisdiction on a sovereign and independent nation," Bukele, 40, said in a tweet, referring to the older generation of "baby boomers". "We are not your colony, your back yard or your front yard. Stay out of our internal affairs. Don’t try to control something you can’t control." Also read | Three women convicted of abortion finally freed in El Salvador El Salvador was the first country in the world to adopt cryptocurrency for official use, in parallel to the US dollar, a decision that has drawn it harsh criticism from the International Monetary Fund (IMF). The US senators also expressed fear over the fact that adopting bitcoin could weaken the US government's sanctions policy and increase the activity of criminal organizations. "This new policy has the potential to weaken US sanctions policy, empowering malign actors like China and organized criminal organizations. Our bipartisan legislation seeks greater clarity on El Salvador’s policy," said the senators in a statement. Watch | El Salvador's president Nayib Bukele Plans World's First Bitcoin City The Salvadoran government, which has acquired some 1,801 bitcoins since September, has been questioned by economists and the opposition for its refusal to be accountable in the process of buying and managing the funds. Diplomatic relations between El Salvador and the United States have deteriorated after the White House denounced publicly cases of corruption in Bukele's government and an escalation of measures to accumulate power.

Bukele warns bitcoin-wary 'boomer' US senators to stay out of El Salvador's internal affairs

As tensions continue to mount over the Ukraine crisis, a new report has claimed that Kyiv is crowdfunding donations in Bitcoin to fund a possible war against Moscow.

According to a report by blockchain analytics company Elliptic, donations worth thousands of dollars have seeped into non-governmental organisations (NGOs) and volunteer groups— increasing by over 900 per cent in 2021.

The report states that NGOs and volunteer groups, who are peeved with government corruption, have taken upon themselves to fund weapons and medical supplies to Ukrainian soldiers, as well for the development of a facial recognition app that identifies if someone is a Russian mercenary or spy.

Elliptic says that donors are using Bitcoin to funnel money to such NGOs, bypassing any banks and financial institutions that might block payments.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
New Elliptic research shows how war in the Ukraine is being crowdfunded with <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw">#crypto</a>. Crypto funds are used to equip the Ukrainian army and fund cyberattacks against Russia. Crypto donations to these groups increased by over 900% in 2021. <a href="https://t.co/7clIA9hZYz">https://t.co/7clIA9hZYz</a> <a href="https://t.co/1PXcyqfDKG">pic.twitter.com/1PXcyqfDKG</a>
— elliptic (@elliptic) <a href="https://twitter.com/elliptic/status/1491034134160056321?ref_src=twsrc%5Etfw">February 8, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

“Elliptic has identified several cryptocurrency wallets used by these volunteer groups and NGOs, which have collectively received funds totalling just over $570,000 – much of it over the past year,” states the report.

Also read |&nbsp;<a href="https://www.wionews.com/world/ultimatums-threats-from-west-on-ukraine-wont-work-against-russia-says-foreign-minister-452104">Ultimatums, threats from West on Ukraine won’t work against Russia, says foreign minister</a>

According to the report, groups receiving Bitcoin donations include Come Back Alive, which provides training, military, and medical equipment, and the Myrotvorets Center, which has ties to the Ukrainian government.

As Russia and US continue to exchange threats over the Ukraine crisis, several European leaders are trying to broker peace in order to stave off a war in the eastern European region.

France’s Emmanuel Macron, top ministers from Britain have arrived in Moscow to defuse the tense situation.

Also read |&nbsp;<a href="https://www.wionews.com/world/ukraine-crisis-russia-continues-to-deploy-more-forces-adding-tactical-groups-says-us-451895">Ukraine crisis: Russia continues to deploy more forces, adding tactical groups, says US</a>

According to reports and claims made by the West, Russia has amassed over 100,000 troops near the Ukrainian border, stoking fears of invasion.

On Thursday Russia began the 10-day joint military drills in Belarus, Ukraine's northern neighbour and a close ally of Russia. Some 30,000 Russian troops are expected to take part.

A Kremlin spokesman said the joint drills were serious, but he pointed out the nature of threats was higher than before.

(With inputs from agencies)

As tensions continue to mount over the Ukraine crisis, a new report has claimed that Kyiv is crowdfunding donations in Bitcoin to fund a possible war against Moscow.

As tensions continue to mount over the Ukraine crisis, a new report has claimed that Kyiv is crowdfunding donations in Bitcoin to fund a possible war against Moscow. According to a report by blockchain analytics company Elliptic, donations worth thousands of dollars have seeped into non-governmental organisations (NGOs) and volunteer groups— increasing by over 900 per cent in 2021. The report states that NGOs and volunteer groups, who are peeved with government corruption, have taken upon themselves to fund weapons and medical supplies to Ukrainian soldiers, as well for the development of a facial recognition app that identifies if someone is a Russian mercenary or spy. Elliptic says that donors are using Bitcoin to funnel money to such NGOs, bypassing any banks and financial institutions that might block payments. New Elliptic research shows how war in the Ukraine is being crowdfunded with #crypto. Crypto funds are used to equip the Ukrainian army and fund cyberattacks against Russia. Crypto donations to these groups increased by over 900% in 2021. https://t.co/7clIA9hZYz pic.twitter.com/1PXcyqfDKG — elliptic (@elliptic) February 8, 2022 × “Elliptic has identified several cryptocurrency wallets used by these volunteer groups and NGOs, which have collectively received funds totalling just over $570,000 – much of it over the past year,” states the report. Also read | Ultimatums, threats from West on Ukraine won’t work against Russia, says foreign minister According to the report, groups receiving Bitcoin donations include Come Back Alive, which provides training, military, and medical equipment, and the Myrotvorets Center, which has ties to the Ukrainian government. As Russia and US continue to exchange threats over the Ukraine crisis, several European leaders are trying to broker peace in order to stave off a war in the eastern European region. France’s Emmanuel Macron, top ministers from Britain have arrived in Moscow to defuse the tense situation. Also read | Ukraine crisis: Russia continues to deploy more forces, adding tactical groups, says US According to reports and claims made by the West, Russia has amassed over 100,000 troops near the Ukrainian border, stoking fears of invasion. On Thursday Russia began the 10-day joint military drills in Belarus, Ukraine's northern neighbour and a close ally of Russia. Some 30,000 Russian troops are expected to take part. A Kremlin spokesman said the joint drills were serious, but he pointed out the nature of threats was higher than before. (With inputs from agencies)

Ukraine using Bitcoin to crowdfund possible war against Russia: Report

A self-declared rapper who describes her style as 'sexy horrer comedy' is in trouble over allegations of laundering bitcoin worth billions of dollars. Both Heather Morgan (the 'rapper') and her husband Ilya "Dutch" Lichtenstein were arrested in Manhattan on Tuesday.

The headline announced by the Justice Department was the couple's alleged involvement in laundering bitcoin stolen in a 2016 hack of the virtual currency exchange Bitfinex.

But public attention was swiftly diverted when it emerged that Morgan had another life as an aspiring rap star, and had put out a video that became an internet sensation for its sheer awfulness.

Dubbed "Bitcoin Bonnie and Crypto Clyde" by financial newsletter Morning Brew, Lichtenstein, 34, and Morgan, 31, are being held without bail until a hearing on Friday.

Morgan's cringeworthy rap videos in particular were burning up the internet before being taken offline. 
On her website, Morgan calls herself "Razzlekhan" or the "Versace Bedouin" -- "the raunchy rapper with more pizzazz that Genghis Khan."

"I'm a real risk taker/pirate riding the flood/I'm a badass money maker," she raps in one video in which she refers to herself as the&nbsp;"Crocodile of Wall Street."

"Come real far but don't know where I'm headed/Blindly following rules is for fools," she says, gyrating on Wall Street wearing sunglasses, a leopard print scarf, and shiny gold jacket.

"Her art often resembles something in between an acid trip and a delightful nightmare," Morgan wrote about herself on her website, Razzlekhan.com. "Definitely not for the faint of heart or easily offended.

"Razz likes to push the limits of what people are comfortable with," she said. "Her style has often been described as 'sexy horror comedy.'"

When not making rap videos or posting pictures of her artwork or Bengal cat on Facebook, Morgan was a contributor to the financial publications Forbes and Inc.

A June 2020 article she wrote for Forbes was ironically titled: "Experts Share Tips To Protect Your Business From Cybercriminals."

Lichtenstein and Morgan allegedly sought to launder the proceeds of 119,754 bitcoin -- presently valued at $4.5 billion -- stolen in the 2016 hack of Bitfinex.

(With inputs from agencies)

A self-declared rapper who describes her style as 'sexy horrer comedy' is in trouble over allegations of laundering bitcoin worth billions of dollars. Both Heather Morgan (the 'rapper') and her husband Ilya "Dutch" Lichtenstein were arrested in Manhattan on Tuesday.

A self-declared rapper who describes her style as 'sexy horrer comedy' is in trouble over allegations of laundering bitcoin worth billions of dollars. Both Heather Morgan (the 'rapper') and her husband Ilya "Dutch" Lichtenstein were arrested in Manhattan on Tuesday. The headline announced by the Justice Department was the couple's alleged involvement in laundering bitcoin stolen in a 2016 hack of the virtual currency exchange Bitfinex. But public attention was swiftly diverted when it emerged that Morgan had another life as an aspiring rap star, and had put out a video that became an internet sensation for its sheer awfulness. Dubbed "Bitcoin Bonnie and Crypto Clyde" by financial newsletter Morning Brew, Lichtenstein, 34, and Morgan, 31, are being held without bail until a hearing on Friday. Morgan's cringeworthy rap videos in particular were burning up the internet before being taken offline. On her website, Morgan calls herself "Razzlekhan" or the "Versace Bedouin" -- "the raunchy rapper with more pizzazz that Genghis Khan." "I'm a real risk taker/pirate riding the flood/I'm a badass money maker," she raps in one video in which she refers to herself as the "Crocodile of Wall Street." "Come real far but don't know where I'm headed/Blindly following rules is for fools," she says, gyrating on Wall Street wearing sunglasses, a leopard print scarf, and shiny gold jacket. "Her art often resembles something in between an acid trip and a delightful nightmare," Morgan wrote about herself on her website, Razzlekhan.com. "Definitely not for the faint of heart or easily offended. "Razz likes to push the limits of what people are comfortable with," she said. "Her style has often been described as 'sexy horror comedy.'" When not making rap videos or posting pictures of her artwork or Bengal cat on Facebook, Morgan was a contributor to the financial publications Forbes and Inc. A June 2020 article she wrote for Forbes was ironically titled: "Experts Share Tips To Protect Your Business From Cybercriminals." Lichtenstein and Morgan allegedly sought to launder the proceeds of 119,754 bitcoin -- presently valued at $4.5 billion -- stolen in the 2016 hack of Bitfinex. (With inputs from agencies)

'Sexy horror comedy': Woman behind $4.5 billion bitcoin theft is also a busy rapper

The US Justice Department announced on Tuesday that it has uncovered its largest cryptocurrency theft to date, seizing $3.6 billion in bitcoin tied to digital currency exchange Bitfinex's 2016 hack. A husband-and-wife team were arrested on money laundering charges.

Ilya "Dutch" Lichtenstein, 34, and his wife Heather Morgan Morgan, 31, were arrested in Manhattan on Tuesday morning. They spent the illegal proceeds on items ranging from gold and non-fungible tokens to a $500 Walmart gift card, according to prosecutors.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/us-charges-three-north-korean-hackers-in-13-billion-theft-spree-364574">US charges three North Korean hackers in $1.3 billion theft spree</a>

Deputy Attorney General Lisa Monaco said it was the Justice Department's largest financial seizure, emphasising that cryptocurrency is not a safe haven for criminals.

Among the charges against Lichtenstein and Morgan are conspiracies to defraud the United States and to commit money laundering. The lawsuit was filed in a federal court in Washington, DC.

US Magistrate Judge Debra Freeman set Lichtenstein's bond at $5 million and Morgan's at $3 million during their preliminary appearances in federal court on Tuesday. She demanded that their parents post their homes as security for their return to court.

The pair is accused of conspiring to launder 119,754 bitcoins stolen from Bitfinex after an attacker initiated more than 2,000 unauthorised transactions. The value of the transactions at the time was $71 million in bitcoin, but as the currency's value has grown, it's now over $4.5 billion.

Also read |&nbsp;<a href="https://www.wionews.com/science-technology/crypto-platform-wormhole-hit-by-320-million-hack-450282">Crypto platform Wormhole hit by $320 million hack</a>

An important clue may have been found in the 2017 bust of an underground digital market used to launder some of the funds. US officials said that some of the money was transferred to AlphaBay, a dark web version of eBay that allows anything to be sold.

Elliptic, a digital currency tracking company, says it is plausible that when AlphaBay shut down, it allowed authorities access to its internal transaction logs, which were linked to a cryptocurrency account in Lichtenstein's name.

Bitfinex said in a statement that the company was working with the Department of Justice to establish its rights to the bitcoin stolen.

Additionally, Lichtenstein and Morgan attempted to launder money by using a network of currency exchanges or claiming that the money represented payments to Morgan's startup, according to the DOJ.

Watch |&nbsp;Digital hoarding: What it is and why you should care

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/digital-hoarding-what-it-is-and-why-you-should-care-450726/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Both Morgan and Lichtenstein, who have dual citizenship with the United States and Russia, nodded as Freeman warned them that fleeing would result in severe penalties.

Both will be placed under house arrest, with electronic monitoring, and will not be allowed to transact in cryptocurrency pending trial, Freeman said. Later, a judge in Washington, where further hearings will be held, may set different conditions, she said.

(With inputs from agencies)

The US Justice Department announced on Tuesday that it has uncovered its largest cryptocurrency theft to date, seizing $3.6 billion in bitcoin tied to digital currency exchange Bitfinex's 2016 hack.

The US Justice Department announced on Tuesday that it has uncovered its largest cryptocurrency theft to date, seizing $3.6 billion in bitcoin tied to digital currency exchange Bitfinex's 2016 hack. A husband-and-wife team were arrested on money laundering charges. Ilya "Dutch" Lichtenstein, 34, and his wife Heather Morgan Morgan, 31, were arrested in Manhattan on Tuesday morning. They spent the illegal proceeds on items ranging from gold and non-fungible tokens to a $500 Walmart gift card, according to prosecutors. Also read | US charges three North Korean hackers in $1.3 billion theft spree Deputy Attorney General Lisa Monaco said it was the Justice Department's largest financial seizure, emphasising that cryptocurrency is not a safe haven for criminals. Among the charges against Lichtenstein and Morgan are conspiracies to defraud the United States and to commit money laundering. The lawsuit was filed in a federal court in Washington, DC. US Magistrate Judge Debra Freeman set Lichtenstein's bond at $5 million and Morgan's at $3 million during their preliminary appearances in federal court on Tuesday. She demanded that their parents post their homes as security for their return to court. The pair is accused of conspiring to launder 119,754 bitcoins stolen from Bitfinex after an attacker initiated more than 2,000 unauthorised transactions. The value of the transactions at the time was $71 million in bitcoin, but as the currency's value has grown, it's now over $4.5 billion. Also read | Crypto platform Wormhole hit by $320 million hack An important clue may have been found in the 2017 bust of an underground digital market used to launder some of the funds. US officials said that some of the money was transferred to AlphaBay, a dark web version of eBay that allows anything to be sold. Elliptic, a digital currency tracking company, says it is plausible that when AlphaBay shut down, it allowed authorities access to its internal transaction logs, which were linked to a cryptocurrency account in Lichtenstein's name. Bitfinex said in a statement that the company was working with the Department of Justice to establish its rights to the bitcoin stolen. Additionally, Lichtenstein and Morgan attempted to launder money by using a network of currency exchanges or claiming that the money represented payments to Morgan's startup, according to the DOJ. Watch | Digital hoarding: What it is and why you should care Both Morgan and Lichtenstein, who have dual citizenship with the United States and Russia, nodded as Freeman warned them that fleeing would result in severe penalties. Both will be placed under house arrest, with electronic monitoring, and will not be allowed to transact in cryptocurrency pending trial, Freeman said. Later, a judge in Washington, where further hearings will be held, may set different conditions, she said. (With inputs from agencies)

$4.5 billion in bitcoin: US uncovers biggest-ever cryptocurrency theft

The US Justice Department has unraveled its biggest cryptocurrency theft, it seized more than $3.6 billion worth of Bitcoin stolen in a 2016 hack from the Bitfinex currency exchange.

US makes largest financial seizure ever, seizes $3.6 bn in Bitcoin stolen in 2016

During the budget session, Finance Minister Nirmala Sitharaman said that the Reserve Bank of India would begin issuing Digital Rupees, also known as Central bank Digital Currency, in 2022-23, giving a boost to India’s economy. The concept of “Central Bank Digital Currencies” (CBDC) has been around for a while and has gained adoption with the rise of Bitcoin and countries like China issuing their own digital currency known as Digital Yuan to compete with the US Dollar on a global scale.

The notion of digital money has only been publicly explored by central banks, economists, and politicians in the past decade. CBDC is a digital or virtual currency, but it differs from the private virtual currencies that have proliferated in the recent decade.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/indian-budget-2022-digital-rupee-to-be-issued-using-blockchain-and-other-technologies-nirmala-sitharaman-449483/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Private virtual currencies are diametrically opposed to the traditional understanding of money. They are neither physical commodities nor generally claims on commodities since they have no inherent value; some assertions that are similar to gold seem to be purely speculative. They usually do not reflect any person’s debt or obligation unless they qualify as security tokens under respective regulatory frameworks. &nbsp;

Although the benefits of global settlements may be realised if both nations in a currency transaction have CBDCs, the advantages of issuing a CBDC &nbsp;may be sufficient to warrant India issuing one. Cash remains the preferred mode of payment and for receiving money for regular expenses. According to a Reserve Bank’s pilot survey on individuals’ retail payment habits in six cities between December 2018 and January 2019, cash is most often used for small-value transactions averaging 37,000 INR.

Also Read | <a href="https://www.wionews.com/india-news/indian-union-budget-2022-digital-rupee-to-be-introduced-virtual-assets-to-be-taxed-at-30-449464">Indian Union Budget 2022: Digital rupee to be introduced, virtual assets to be taxed at 30% &nbsp;</a>

It is critical to understand that CBDCs may reduce transaction demand for bank deposits, depending on the degree to which they are used. Because transactions in CBDCs lower settlement risk, they also minimise transaction liquidity requirements such as intra-day liquidity. Furthermore, offering a truly risk-free alternative to bank savings may encourage a movement away from bank deposits, reducing the need for government deposit guarantees.

On the other hand, reduced bank disintermediation comes with its own set of institutional risks. If banks start losing deposits over time, their capacity to provide credit is hampered. Because central banks are unable to lend to the private sector, the influence on the function of bank lending must be carefully considered in the context of the Indian economy. Furthermore, when banks lose considerable amounts of low-cost transaction deposits, their interest margins may be strained, resulting in a rise in lending costs which may impact the Indian economy at large. As a result of the possible costs of disintermediation, it is critical to design and operate CBDC so that demand for CBDC is controllable compared to bank deposits.

The accessibility of CBDC makes it simple for depositors to withdraw funds if a bank is experiencing difficulties. Deposits may be made considerably more quickly than cash withdrawals. On the other hand, having CBDCs available may prevent panic “runs” since depositors know they may withdraw quickly. One outcome might be that banks are driven to keep a higher level of liquidity, resulting in poorer profits for commercial banks with reduced lending capacity.

Understanding the Digital Rupee and the Indian Monetary Policy 
&nbsp; 
CBDCs have the potential to affect the behaviour of the general public and the Indian economy at large. If demand for CBDCs exceeds supply and CBDCs are primarily issued via the banking system, as is expected, additional liquidity may be required to compensate for currency leakage from the banking system.

For this specific reason, much recent debate has focused on using negative interest-bearing CBDCs for monetary policy efficacy because negative interest rates are ineffective due to the transition to cash. Many advanced countries have been limited in their capacity to cut interest rates due to the exceptionally low inflationary economy. If money can carry a negative interest rate, the monetary transmission of negative policy rates to increase demand would be more successful. As a result, the case for paying a negative interest rate on CBDC as an unorthodox monetary policy instrument to encourage consumption is made. Any instrument that pays interest positive or negative is technically not a currency; hence such measures should be handled with caution as they may impact the Indian banking system. Interest-bearing CBDCs can impact the attractiveness of fixed deposits held by banking, negatively impacting Indian banks’ lending capacity.

Understanding Digital Rupee and its Technology Risk

Digital Rupee’s technical ecosystem may be vulnerable to cyber-attacks in the same way that present payment systems are. Furthermore, the rise in digital payment-related scams may expand to Digital Rupee in areas with lower financial literacy levels. As a result, institutions dealing with Digital Rupee must ensure strong cybersecurity standards while also focusing on financial literacy.

The economy’s ability to absorb Digital Rupee is partly dependent on technological readiness. The development of a population-scale digital currency system depends on the advancement of high-speed internet and telecommunication networks and the availability of adequate technology for storing and transacting in Digital Rupee with the general public. Lower levels of technology adoption in underdeveloped areas in India may restrict the reach of the Digital Rupee and exacerbate existing inequities in access to financial goods and services.

User Privacy and CBDC: The trade-off for Indian Citizens

The condition in which an individual’s information is known exclusively to the person and is not shared with anybody else without the individual’s agreement is known as privacy. The data is supposed to be kept private when it comes to financial transactions and it is critical to understand privacy from a CBDC perspective:

1. Individual identity

This contains personal information like a person’s name, address, a unique identifier like Adhaar card, a Driving License, PAN Card, passport number, and so forth.

2. Transaction History of Individuals

This comprises details about all financial transactions and history. The financial privacy of Indian citizens is critical as it is sensitive personal data that needs to be protected. Further, it overlaps with Personal Data Protection law, making it essential that the Indian CBDC architecture has enough safeguards to protect sensitive data for national security purposes.

3. Data about the transaction’s metadata

The information linked with a transaction might take many different forms depending on the kind of transaction. For example, the time of the transaction, the name of the transactors, the specifications of the products transferred within the transaction, the transactors’ location, and so on may all be found in the metadata of a credit-card transaction.

The preceding definition of privacy is significant because, with a technology-based CBDC implementation, the Central Bank’s and, by implication, other governmental agencies access to the aforementioned fields will be considerably more complicated than it is now. The government may carefully monitor the public by tying an individual’s financial information to their identity, which is a trade-off that Indian citizens would have to adapt to in the long run and forgo individual financial privacy.

Aside from the definition mentioned above of privacy, this article posits that a CBDC implementation may result in the entire abolition of fiat money in the long run, posing the Privacy conundrum. CBDC, unlike regular banknotes, allows payment devices to collect different information and data associated with payments and transactions. By using technology such as blockchain, the privacy concerns of the data-driven CBDC might be alleviated. On the other hand, many people believe that establishing CBDC would provide the law department with additional options for dealing with money laundering and tax evasion. For example, one of the benefits of the newly released Chinese CBDC is the avoidance of tax evasion. This may help the Indian economy as it may increase tax collection at the cost of individual financial privacy.

Decoding the Indian Legal Framework for CBDC

Although CBDCs are essentially identical to banknotes, their adoption would need the creation of an appropriate legal framework since present legal rules are written with paper money in mind. The Reserve Bank of India is authorised by the Reserve Bank of India Act, 1934, to “...control the issuing of banknotes and the holding of reserves with a view to maintaining monetary stability in India and generally to manage the country’s currency and credit system to its benefit” as stated in the preamble of the act. Various provisions of the RBI Act provide the Reserve Bank with the appropriate legislative authorities, such as those relating to denomination under Section 24, banknote shape under Section 25, legal tender status under Section 26(1), etc. Other Acts, such as the Coinage Act of 2011, the FEMA Act of 1999, and the Information Technology Act of 2000, may need substantial revisions. Even though CBDCs will be largely a technology-driven product, making the law technology-neutral to encompass a wide range of technological options will be preferable.

Conclusion

Digital Rupee’s implementation has the potential to deliver major advantages, such as less reliance on cash, increased seigniorage owing to lower transaction costs, and reduced settlement risk. CBDC might lead to a more reliable, efficient, trustworthy, regulated, and legal tender-based payment solution. There are risks involved, to be sure, but they must be carefully weighed against the possible advantages. 
&nbsp; 
In the future, CBDCs are expected to be a part of any central bank’s armoury. Setting this up will need careful calibration and a sophisticated execution strategy. Stakeholder interactions and considerations on the drawing board are critical for designing a CBDC with a net positive impact with minimum technology risk. The relevance of technical difficulties when developing CBDC cannot be overstated as it will impact national economies and monetary policy.&nbsp;

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

During the budget session, Finance Minister Nirmala Sitharaman said that the Reserve Bank of India would begin issuing Digital Rupees, also known as Central bank Digital Currency, in 2022-23, giving a boost to India’s economy.

During the budget session, Finance Minister Nirmala Sitharaman said that the Reserve Bank of India would begin issuing Digital Rupees, also known as Central bank Digital Currency, in 2022-23, giving a boost to India’s economy. The concept of “Central Bank Digital Currencies” (CBDC) has been around for a while and has gained adoption with the rise of Bitcoin and countries like China issuing their own digital currency known as Digital Yuan to compete with the US Dollar on a global scale. The notion of digital money has only been publicly explored by central banks, economists, and politicians in the past decade. CBDC is a digital or virtual currency, but it differs from the private virtual currencies that have proliferated in the recent decade. × Private virtual currencies are diametrically opposed to the traditional understanding of money. They are neither physical commodities nor generally claims on commodities since they have no inherent value; some assertions that are similar to gold seem to be purely speculative. They usually do not reflect any person’s debt or obligation unless they qualify as security tokens under respective regulatory frameworks. Although the benefits of global settlements may be realised if both nations in a currency transaction have CBDCs, the advantages of issuing a CBDC may be sufficient to warrant India issuing one. Cash remains the preferred mode of payment and for receiving money for regular expenses. According to a Reserve Bank’s pilot survey on individuals’ retail payment habits in six cities between December 2018 and January 2019, cash is most often used for small-value transactions averaging 37,000 INR. Also Read | Indian Union Budget 2022: Digital rupee to be introduced, virtual assets to be taxed at 30% It is critical to understand that CBDCs may reduce transaction demand for bank deposits, depending on the degree to which they are used. Because transactions in CBDCs lower settlement risk, they also minimise transaction liquidity requirements such as intra-day liquidity. Furthermore, offering a truly risk-free alternative to bank savings may encourage a movement away from bank deposits, reducing the need for government deposit guarantees. On the other hand, reduced bank disintermediation comes with its own set of institutional risks. If banks start losing deposits over time, their capacity to provide credit is hampered. Because central banks are unable to lend to the private sector, the influence on the function of bank lending must be carefully considered in the context of the Indian economy. Furthermore, when banks lose considerable amounts of low-cost transaction deposits, their interest margins may be strained, resulting in a rise in lending costs which may impact the Indian economy at large. As a result of the possible costs of disintermediation, it is critical to design and operate CBDC so that demand for CBDC is controllable compared to bank deposits. The accessibility of CBDC makes it simple for depositors to withdraw funds if a bank is experiencing difficulties. Deposits may be made considerably more quickly than cash withdrawals. On the other hand, having CBDCs available may prevent panic “runs” since depositors know they may withdraw quickly. One outcome might be that banks are driven to keep a higher level of liquidity, resulting in poorer profits for commercial banks with reduced lending capacity. Understanding the Digital Rupee and the Indian Monetary Policy CBDCs have the potential to affect the behaviour of the general public and the Indian economy at large. If demand for CBDCs exceeds supply and CBDCs are primarily issued via the banking system, as is expected, additional liquidity may be required to compensate for currency leakage from the banking system. For this specific reason, much recent debate has focused on using negative interest-bearing CBDCs for monetary policy efficacy because negative interest rates are ineffective due to the transition to cash. Many advanced countries have been limited in their capacity to cut interest rates due to the exceptionally low inflationary economy. If money can carry a negative interest rate, the monetary transmission of negative policy rates to increase demand would be more successful. As a result, the case for paying a negative interest rate on CBDC as an unorthodox monetary policy instrument to encourage consumption is made. Any instrument that pays interest positive or negative is technically not a currency; hence such measures should be handled with caution as they may impact the Indian banking system. Interest-bearing CBDCs can impact the attractiveness of fixed deposits held by banking, negatively impacting Indian banks’ lending capacity. Understanding Digital Rupee and its Technology Risk Digital Rupee’s technical ecosystem may be vulnerable to cyber-attacks in the same way that present payment systems are. Furthermore, the rise in digital payment-related scams may expand to Digital Rupee in areas with lower financial literacy levels. As a result, institutions dealing with Digital Rupee must ensure strong cybersecurity standards while also focusing on financial literacy. The economy’s ability to absorb Digital Rupee is partly dependent on technological readiness. The development of a population-scale digital currency system depends on the advancement of high-speed internet and telecommunication networks and the availability of adequate technology for storing and transacting in Digital Rupee with the general public. Lower levels of technology adoption in underdeveloped areas in India may restrict the reach of the Digital Rupee and exacerbate existing inequities in access to financial goods and services. User Privacy and CBDC: The trade-off for Indian Citizens The condition in which an individual’s information is known exclusively to the person and is not shared with anybody else without the individual’s agreement is known as privacy. The data is supposed to be kept private when it comes to financial transactions and it is critical to understand privacy from a CBDC perspective: 1. Individual identity This contains personal information like a person’s name, address, a unique identifier like Adhaar card, a Driving License, PAN Card, passport number, and so forth. 2. Transaction History of Individuals This comprises details about all financial transactions and history. The financial privacy of Indian citizens is critical as it is sensitive personal data that needs to be protected. Further, it overlaps with Personal Data Protection law, making it essential that the Indian CBDC architecture has enough safeguards to protect sensitive data for national security purposes. 3. Data about the transaction’s metadata The information linked with a transaction might take many different forms depending on the kind of transaction. For example, the time of the transaction, the name of the transactors, the specifications of the products transferred within the transaction, the transactors’ location, and so on may all be found in the metadata of a credit-card transaction. The preceding definition of privacy is significant because, with a technology-based CBDC implementation, the Central Bank’s and, by implication, other governmental agencies access to the aforementioned fields will be considerably more complicated than it is now. The government may carefully monitor the public by tying an individual’s financial information to their identity, which is a trade-off that Indian citizens would have to adapt to in the long run and forgo individual financial privacy. Aside from the definition mentioned above of privacy, this article posits that a CBDC implementation may result in the entire abolition of fiat money in the long run, posing the Privacy conundrum. CBDC, unlike regular banknotes, allows payment devices to collect different information and data associated with payments and transactions. By using technology such as blockchain, the privacy concerns of the data-driven CBDC might be alleviated. On the other hand, many people believe that establishing CBDC would provide the law department with additional options for dealing with money laundering and tax evasion. For example, one of the benefits of the newly released Chinese CBDC is the avoidance of tax evasion. This may help the Indian economy as it may increase tax collection at the cost of individual financial privacy. Decoding the Indian Legal Framework for CBDC Although CBDCs are essentially identical to banknotes, their adoption would need the creation of an appropriate legal framework since present legal rules are written with paper money in mind. The Reserve Bank of India is authorised by the Reserve Bank of India Act, 1934, to “...control the issuing of banknotes and the holding of reserves with a view to maintaining monetary stability in India and generally to manage the country’s currency and credit system to its benefit” as stated in the preamble of the act. Various provisions of the RBI Act provide the Reserve Bank with the appropriate legislative authorities, such as those relating to denomination under Section 24, banknote shape under Section 25, legal tender status under Section 26(1), etc. Other Acts, such as the Coinage Act of 2011, the FEMA Act of 1999, and the Information Technology Act of 2000, may need substantial revisions. Even though CBDCs will be largely a technology-driven product, making the law technology-neutral to encompass a wide range of technological options will be preferable. Conclusion Digital Rupee’s implementation has the potential to deliver major advantages, such as less reliance on cash, increased seigniorage owing to lower transaction costs, and reduced settlement risk. CBDC might lead to a more reliable, efficient, trustworthy, regulated, and legal tender-based payment solution. There are risks involved, to be sure, but they must be carefully weighed against the possible advantages. In the future, CBDCs are expected to be a part of any central bank’s armoury. Setting this up will need careful calibration and a sophisticated execution strategy. Stakeholder interactions and considerations on the drawing board are critical for designing a CBDC with a net positive impact with minimum technology risk. The relevance of technical difficulties when developing CBDC cannot be overstated as it will impact national economies and monetary policy. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

Decoding how RBI’s Digital Rupee will impact the Indian economy

How much tax is imposed on cryptocurrency in different countries worldwide?

The dollar traded steady ahead of the US Federal Reserve's January policy meeting later this week, while bitcoin lay bruised near a six-month low hit over the weekend, hurt by a sell-off in technology stocks.

Cryptocurrencies pause after weekend battering, other currencies wait for Fed Meet

With numerous economies looking to keep a check on the growing popularity of cryptocurrency, Bitcoin seems to have lost almost half of its value since its record high in November last year. &nbsp;&nbsp;

The value is continuing to plunge.&nbsp;Not just Bitcoin, other cryptocurrencies have also had a hard time in this year till now. &nbsp;&nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/world/germany-plans-to-attract-400000-foreign-workers-per-year-446589" hreflang="en">Germany plans to attract 400,000 foreign workers per year</a>

In the last 24 hours, Bitcoin has fallen over 8%. It was trading at $35,479 as of 9:30 am ET, as per CoinDesk. &nbsp;&nbsp;

Since the beginning of 2022, the world's most valuable cryptocurrency has fallen over 20%. In November 2021, it was trading at a record $68,990. &nbsp;

The other cryptocurrencies have done worse. Ethereum, which is the world's second most valuable cryptocurrency, has plummeted over 12% in the last 24 hours. &nbsp;&nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/world/first-part-of-us-defence-aid-arrives-in-ukraine-germany-will-not-supply-weapons-to-kyiv-for-now-446699" hreflang="en">First part of US defence aid arrives in Ukraine; Germany will not supply weapons to Kyiv for now</a>

It was trading at around $2,400 as of Saturday morning, as per CoinDesk. It is an almost 30% fall since start of 2020. &nbsp;

Numerous investors are getting worried over the continuous fall and the clampdown on these digital currencies. &nbsp;&nbsp;

Russian central bank has proposed a ban on cryptocurrency use and mining on the territory of the country. The bank has cited threats posed by cryptocurrency to financial stability, citizens' wellbeing and its monetary policy sovereignty. &nbsp;

(With inputs from agencies)

With numerous economies looking to keep a check on the growing popularity of cryptocurrency, Bitcoin seems to have lost almost half of its value since its record high in November last year.

With numerous economies looking to keep a check on the growing popularity of cryptocurrency, Bitcoin seems to have lost almost half of its value since its record high in November last year. The value is continuing to plunge. Not just Bitcoin, other cryptocurrencies have also had a hard time in this year till now. Also Read: Germany plans to attract 400,000 foreign workers per year In the last 24 hours, Bitcoin has fallen over 8%. It was trading at $35,479 as of 9:30 am ET, as per CoinDesk. Since the beginning of 2022, the world's most valuable cryptocurrency has fallen over 20%. In November 2021, it was trading at a record $68,990. The other cryptocurrencies have done worse. Ethereum, which is the world's second most valuable cryptocurrency, has plummeted over 12% in the last 24 hours. Also Read: First part of US defence aid arrives in Ukraine; Germany will not supply weapons to Kyiv for now It was trading at around $2,400 as of Saturday morning, as per CoinDesk. It is an almost 30% fall since start of 2020. Numerous investors are getting worried over the continuous fall and the clampdown on these digital currencies. Russian central bank has proposed a ban on cryptocurrency use and mining on the territory of the country. The bank has cited threats posed by cryptocurrency to financial stability, citizens' wellbeing and its monetary policy sovereignty. (With inputs from agencies)

Since record high in November 2021, Bitcoin plummets to almost half its value

Bitcoin tumbles below $40,000 mark on Monday falling to its lowest level for the first time in over three months. However, after the dip, it recovered some ground and rose to $41,198.&nbsp;

Speaking about the dropped value, Naeem Aslam, chief market analyst at Avatrade said, "The main culprit behind the slump in crypto prices is the Fed's decision to withdraw massive liquidity, which has been pumped into markets since the onset of the coronavirus pandemic."

<a href="https://www.wionews.com/world/russia-ukraine-conflict-nato-chief-warns-moscow-of-severe-costs-if-kiev-attacked-443693">Also read |&nbsp;Russia-Ukraine conflict: NATO chief warns Moscow of 'severe costs' if Kiev attacked</a>

Earlier in May last year, Bitcoin had hit a similar low as its value dropped below $40,000. This happened after China banned financial and payment institutions from providing cryptocurrency services.

Bloomberg Intelligence’s Mike McGlone claimed that $40,000 is an important technical support level. He further predicted that bitcoin will eventually experience a surge in its value as the world is becoming digital and the coin becomes the benchmark collateral.

Despite bitcoin's volatility and limitations as a means of payment, it is seen as a store of value to rivals. Also, it is expected to one day surpass gold as a haven investment in the face of high inflation for example.&nbsp;

(With inputs from agencies)

Bitcoin tumbles below $40,000 mark on Monday falling to its lowest level for the first time in over three months. However, after the dip, it recovered some ground and rose to $41,198.

Bitcoin tumbles below $40,000 mark on Monday falling to its lowest level for the first time in over three months. However, after the dip, it recovered some ground and rose to $41,198. Speaking about the dropped value, Naeem Aslam, chief market analyst at Avatrade said, "The main culprit behind the slump in crypto prices is the Fed's decision to withdraw massive liquidity, which has been pumped into markets since the onset of the coronavirus pandemic." Also read | Russia-Ukraine conflict: NATO chief warns Moscow of 'severe costs' if Kiev attacked Earlier in May last year, Bitcoin had hit a similar low as its value dropped below $40,000. This happened after China banned financial and payment institutions from providing cryptocurrency services. Bloomberg Intelligence’s Mike McGlone claimed that $40,000 is an important technical support level. He further predicted that bitcoin will eventually experience a surge in its value as the world is becoming digital and the coin becomes the benchmark collateral. Despite bitcoin's volatility and limitations as a means of payment, it is seen as a store of value to rivals. Also, it is expected to one day surpass gold as a haven investment in the face of high inflation for example. (With inputs from agencies)

For the first time in three months, Bitcoin tumbles below $40,000

Scammers stole $14 billion in cryptocurrencies last year. Cryptocurrencies are quickly becoming a part of the mainstream. But how will governments contain the crypto criminals? Palki Sharma tells you more.

Gravitas: Crypto Scammers stole $14 billion in 2021

Binance Coin, or BNB, surpassed its two larger rivals, Bitcoin and Ether, among the three largest digital assets by market capitalization.

With a gain of 1,344 per cent, Binance Coin (BNB) has outperformed the three largest cryptos by market capitalization, while the Binance Smart Chain ecosystem has witnessed enormous growth in 2021, stealing some of Ethereum's market share.

In comparison, market leader Bitcoin grew by 65%, while Ether, the second-largest token, grew by 408%.&nbsp;

The old guard of cryptocurrencies has lost ground to tokens with higher returns this year.

The tendency is expected to continue, according to researchers. 
 
World Business Watch: Britain bans Binance's UK operations in latest cryptocurrency crackdown

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/world-business-watch-britain-bans-binances-uk-operations-in-latest-cryptocurrency-crackdown-394404/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

What is Altcoin, how is it different from Bitcoin?

Alternative digital assets, such as a coin or token that is not Bitcoin, are referred to as altcoins.

This terminology stems from the notion that Bitcoin is the first cryptocurrency, and all others are "alternative" or "alternative" coins.

The word "altcoin" is also loosely applied to digital assets that are officially "tokens" rather than coins.

The ERC-20 tokens, which run on the Ethereum blockchain, are the most well-known instances.&nbsp;

More than 2,000 alternative cryptocurrencies have been implemented since the launch of Bitcoin in 2008.

Through a process known as Hard Fork, many of these altcoins were formed as modified copies of Bitcoin.

Despite some similarities, each altcoin serves a distinct purpose.&nbsp;

(With inputs from agencies)

Binance Coin, or BNB, surpassed its two larger rivals, Bitcoin and Ether, among the three largest digital assets by market capitalization. With a gain of 1,344 per cent, Binance Coin (BNB) has outperformed the three largest cryptos by market capitalization, while the Binance Smart Chain ecosystem has witnessed enormous growth in 2021, stealing some of Ethereum's market share.

Binance Coin, or BNB, surpassed its two larger rivals, Bitcoin and Ether, among the three largest digital assets by market capitalization. With a gain of 1,344 per cent, Binance Coin (BNB) has outperformed the three largest cryptos by market capitalization, while the Binance Smart Chain ecosystem has witnessed enormous growth in 2021, stealing some of Ethereum's market share. In comparison, market leader Bitcoin grew by 65%, while Ether, the second-largest token, grew by 408%. The old guard of cryptocurrencies has lost ground to tokens with higher returns this year. The tendency is expected to continue, according to researchers. World Business Watch: Britain bans Binance's UK operations in latest cryptocurrency crackdown What is Altcoin, how is it different from Bitcoin? Alternative digital assets, such as a coin or token that is not Bitcoin, are referred to as altcoins. This terminology stems from the notion that Bitcoin is the first cryptocurrency, and all others are "alternative" or "alternative" coins. The word "altcoin" is also loosely applied to digital assets that are officially "tokens" rather than coins. The ERC-20 tokens, which run on the Ethereum blockchain, are the most well-known instances. More than 2,000 alternative cryptocurrencies have been implemented since the launch of Bitcoin in 2008. Through a process known as Hard Fork, many of these altcoins were formed as modified copies of Bitcoin. Despite some similarities, each altcoin serves a distinct purpose. (With inputs from agencies)

This 'Altcoin' gained 1,300 % in 2021. So what is this cryptocurrency segment?

India is debating new rules for cryptocurrencies. It isn't the only country considering laws for cryptos around the world. Central banks are mulling their options but, the bank of England has issued a dire warning. One of its governors believes bitcoins could become worthless and investors should be prepared to lose their money. Should you be worried? Our next report has the answer.

Bitcoin to become 'worthless,' A warning from Bank of England

The Deputy Governor of the Bank of England has issued a warning. Sri Jon Cunliffe has said bitcoin could be worthless, and investors should be prepared to lose everything. Palki Sharma tells you more.

Gravitas: Bitcoin could become "worthless", Bank of England Warns

Experts estimate that within five years, digital art will have surpassed traditional art markets.

Both Coinbase and Sotheby's, an auction house that has been functioning since 1744, announced this month that they will be creating NFT marketplaces.

Nonfungible tokens, or NFTs, are one-of-a-kind assets that can't be replaced, and they're validated and stored using blockchain technology.

They can include everything from music to a website address, but digital artwork is the current craze.&nbsp;

What exactly is a Non-Fungible Token (NFT)?

A Non-Fungible Token (NFT) is a one-of-a-kind digital token that is permanently linked to a piece and is encrypted with the artist's signature. It validates the piece's ownership and authenticity.

It's a form of digital asset that can be used to represent real-world artefacts like art, music, video, and in-game stuff.

They're frequently encoded with the same software as many other cryptos and are bought and sold online, often with cryptocurrency.

ALSO READ | &nbsp;<a href="https://www.wionews.com/technology/what-is-log4j-the-biggest-computer-vulnerability-in-decades-436791">What is Log4j, the biggest computer vulnerability in decades?</a>

For example, money is fungible, which means that one rupee can be exchanged for another.

By definition, a non-fungible token is not comparable to another non-fungible token.

This means that each NFT is either one-of-a-kind or part of a very limited run, and each has its own unique code.&nbsp;

What's the difference between a non-fungible token (NFT) and a cryptocurrency?

Fungible assets, such as currency notes, can be easily interchanged.

Cryptocurrencies designed to operate as currencies, such as bitcoin, are fungible, which means that any two bitcoins are similar and thus interchangeable.

ALSO READ | &nbsp;<a href="https://www.wionews.com/technology/nft-worth-300000-accidentally-sells-for-3000-due-to-misplaced-decimal-point-436803">NFT worth $300,000 accidentally sells for $3,000 due to misplaced decimal point</a>

Unlike bitcoin and other cryptocurrencies, NFT is a crypto asset that exists on blockchains (cryptographic digital ledgers), but each token is absolutely unique.

It's great for things like digital art certification. 
 
Watch | What are non-fungible tokens?

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/what-are-non-fungible-tokens-424988/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

 
What do non-fungible tokens (NFT) look like?

The majority of NFTs incorporate digital artwork in the form of images, videos, GIFs, and music.

In theory, anything digital can be converted to an NFT.

How to start buying NFTs?&nbsp;

NFTs are now mostly traded via 'drops,' or timed online sales by blockchain-backed marketplaces such as Nifty Gateway, Opensea, and Rarible.

If you're interested in starting your own NFT collection, you'll need the following items:

To begin with, you'll need a digital wallet that can hold both NFTs and cryptocurrencies.

Depending on what currency your NFT provider takes, you'll probably need to buy some cryptocurrency, such as Ether.

With Coinbase, Kraken, eToro, and even PayPal and Robinhood, you can now buy cryptocurrency with a credit card.

After that, you'll be able to transfer it from the exchange to your preferred wallet.

When researching your alternatives, keep fees in mind.

When you acquire crypto, most exchanges charge at least a portion of your transaction.&nbsp;

Why would I want to own one?

There are numerous reasons why someone might wish to purchase an NFT.

Because NFTs are considered collector's objects, emotional value may be a factor for some.

Others regard them as a potential investment opportunity, comparable to cryptocurrencies, because their value may rise.

Who was the first to invent the NFT?

On May 3rd, 2014, the history of NFTs and the guy who invented them, Kevin McCoy, began.

He created "Quantum," a non-fungible token, long before the crypto art market exploded.

Quantum is a pixelated image of an octagon filled with shapes that share the same centre, with larger shapes surrounding smaller ones and hypnotically pulsing in brilliant hues.

The one-of-a-kind "Quantum" art project (2014-2021) is currently for sale for $7 million.&nbsp;

(With inputs from agencies)

Experts estimate that within five years, digital art will have surpassed traditional art markets. Both Coinbase and Sotheby's, an auction house that has been functioning since 1744, announced this month that they will be creating NFT marketplaces.

Experts estimate that within five years, digital art will have surpassed traditional art markets. Both Coinbase and Sotheby's, an auction house that has been functioning since 1744, announced this month that they will be creating NFT marketplaces. Nonfungible tokens, or NFTs, are one-of-a-kind assets that can't be replaced, and they're validated and stored using blockchain technology. They can include everything from music to a website address, but digital artwork is the current craze. What exactly is a Non-Fungible Token (NFT)? A Non-Fungible Token (NFT) is a one-of-a-kind digital token that is permanently linked to a piece and is encrypted with the artist's signature. It validates the piece's ownership and authenticity. It's a form of digital asset that can be used to represent real-world artefacts like art, music, video, and in-game stuff. They're frequently encoded with the same software as many other cryptos and are bought and sold online, often with cryptocurrency. ALSO READ | What is Log4j, the biggest computer vulnerability in decades? For example, money is fungible, which means that one rupee can be exchanged for another. By definition, a non-fungible token is not comparable to another non-fungible token. This means that each NFT is either one-of-a-kind or part of a very limited run, and each has its own unique code. What's the difference between a non-fungible token (NFT) and a cryptocurrency? Fungible assets, such as currency notes, can be easily interchanged. Cryptocurrencies designed to operate as currencies, such as bitcoin, are fungible, which means that any two bitcoins are similar and thus interchangeable. ALSO READ | NFT worth $300,000 accidentally sells for $3,000 due to misplaced decimal point Unlike bitcoin and other cryptocurrencies, NFT is a crypto asset that exists on blockchains (cryptographic digital ledgers), but each token is absolutely unique. It's great for things like digital art certification. Watch | What are non-fungible tokens? What do non-fungible tokens (NFT) look like? The majority of NFTs incorporate digital artwork in the form of images, videos, GIFs, and music. In theory, anything digital can be converted to an NFT. How to start buying NFTs? NFTs are now mostly traded via 'drops,' or timed online sales by blockchain-backed marketplaces such as Nifty Gateway, Opensea, and Rarible. If you're interested in starting your own NFT collection, you'll need the following items: To begin with, you'll need a digital wallet that can hold both NFTs and cryptocurrencies. Depending on what currency your NFT provider takes, you'll probably need to buy some cryptocurrency, such as Ether. With Coinbase, Kraken, eToro, and even PayPal and Robinhood, you can now buy cryptocurrency with a credit card. After that, you'll be able to transfer it from the exchange to your preferred wallet. When researching your alternatives, keep fees in mind. When you acquire crypto, most exchanges charge at least a portion of your transaction. Why would I want to own one? There are numerous reasons why someone might wish to purchase an NFT. Because NFTs are considered collector's objects, emotional value may be a factor for some. Others regard them as a potential investment opportunity, comparable to cryptocurrencies, because their value may rise. Who was the first to invent the NFT? On May 3rd, 2014, the history of NFTs and the guy who invented them, Kevin McCoy, began. He created "Quantum," a non-fungible token, long before the crypto art market exploded. Quantum is a pixelated image of an octagon filled with shapes that share the same centre, with larger shapes surrounding smaller ones and hypnotically pulsing in brilliant hues. The one-of-a-kind "Quantum" art project (2014-2021) is currently for sale for $7 million. (With inputs from agencies)

What is a non-fungible token (NFT)? Explaining the internet's latest craze

A computer scientist claiming to be inventor of Bitcoin has been told by a US court to pay USD 100 million. He was sued by his former partner, who is now dead. The partner&nbsp;had claimed half of the bitcoin cache with Wright. It is now&nbsp;worth&nbsp;about USD 4 billion. The estate of the departed partner has not been awarded half of the Bitcoin cache worth billions but will now get USD 100 million in intellectual property rights.&nbsp;

The Miami jury cleared Craig Wright on nearly all issues in the dispute, including tha involving transfer of&nbsp;half of the 1.1 million Bitcoin in dispute.

Jurors concluded that Wright was not liable for fraud.

Wright and Dave Klieman were formerly partners in W&amp;K Information Defense Research LLC.

Also Read | <a href="https://www.wionews.com/world/fully-ecological-city-in-a-first-el-salvador-plans-a-bitcoin-city-431130">'Fully ecological city': In a first, El Salvador plans a 'Bitcoin city'</a>

"This has been a remarkable good outcome and I feel completely vindicated," Wright said in a video message, as quoted by Reuters

"There are still more fights. We are going to make everything change: cryptocurrency to digital cash the way it's meant to be."

According to court papers, the 1.1 million Bitcoin had been mined by Satoshi Nakamoto, whose October 2008 white paper "Bitcoin: A Peer-to-Peer Electronic Cash System" described a framework for what would become bitcoin.

Wright claimed in 2016 that he was Nakamoto, which was a pseudonym. The claim has been disputed.

Kleiman's family contended that he and Wright had been friends and business partners, but that Wright stole the bitcoin stemming from their relationship.

In a statement, lawyers for W&amp;K and Kleiman's estate said they were "immensely gratified" that the jury awarded the $100 million in intellectual property rights, and help give the Kleimans "their fair share of what Dave helped create."

(With inputs from agencies)

A computer scientist claiming to be inventor of Bitcoin has been told by a US court to pay USD 100 million. He was sued by his former partner, who is now dead. The partner had claimed half of the bitcoin cache with Wright.

A computer scientist claiming to be inventor of Bitcoin has been told by a US court to pay USD 100 million. He was sued by his former partner, who is now dead. The partner had claimed half of the bitcoin cache with Wright. It is now worth about USD 4 billion. The estate of the departed partner has not been awarded half of the Bitcoin cache worth billions but will now get USD 100 million in intellectual property rights. The Miami jury cleared Craig Wright on nearly all issues in the dispute, including tha involving transfer of half of the 1.1 million Bitcoin in dispute. Jurors concluded that Wright was not liable for fraud. Wright and Dave Klieman were formerly partners in W&K Information Defense Research LLC. Also Read | 'Fully ecological city': In a first, El Salvador plans a 'Bitcoin city' "This has been a remarkable good outcome and I feel completely vindicated," Wright said in a video message, as quoted by Reuters "There are still more fights. We are going to make everything change: cryptocurrency to digital cash the way it's meant to be." According to court papers, the 1.1 million Bitcoin had been mined by Satoshi Nakamoto, whose October 2008 white paper "Bitcoin: A Peer-to-Peer Electronic Cash System" described a framework for what would become bitcoin. Wright claimed in 2016 that he was Nakamoto, which was a pseudonym. The claim has been disputed. Kleiman's family contended that he and Wright had been friends and business partners, but that Wright stole the bitcoin stemming from their relationship. In a statement, lawyers for W&K and Kleiman's estate said they were "immensely gratified" that the jury awarded the $100 million in intellectual property rights, and help give the Kleimans "their fair share of what Dave helped create." (With inputs from agencies)

Bitcoin 'inventor' told to pay USD 100 million by US court

bitcoin

Bitcoin, News on Bitcoin, stories on Bitcoin, articles on Bitcoin, Bitcoin stories at Wion, Bitcoin news, Bitcoin latest news