Last Week [In] Crypto: Crypto Mining Brouhaha, Increasing Adoption Rates, Trouble with Coinbase NFTs, Central Banks Hiking Rates

It was an interesting week for cryptocurrencies with many events in almost every corner of the ecosystem between May 2nd and 8th. Although keeping up with all the news can be a mountain to climb, Be[In]Crypto has selected the top stories in the last week since the approval of cryptocurrency mining in Uzbekistan, the adoption of Bitcoin by the Central African Republic, pro-crypto legislation in California, the new volume of CryptoPunk transactions and the effects of the rise of Feds on crypto .

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Cryptographic mining saga

Last week began with an explosion of cryptocurrencies as Uzbekistan legalized cryptocurrency mining in the country. A presidential order was issued but included the capture that miners have to use solar energy to run their plants instead of burning coal and other fossil fuels.

Given the energy concerns surrounding cryptocurrency mining, the Wikimedia Foundation has announced that it will stop accepting cryptocurrency donations. The Foundation had previously received donations in Bitcoin (BTC), Bitcoin Cash (BCH) and Ethereum (ETH) which are all working proof cryptocurrencies. The impact of the decision may be negligible for the foundation because cryptographic donations accounted for only 0.08% of total revenue in the last 12 months.

Despite all the criticism Bitcoin has received for its environmental impact, Peter Schiff, a staunch critic, is not in favor of an absolute ban on bitcoins. The gold advocate referred to Bitcoin mining as a waste of energy, but “people have a right to waste energy as long as they are willing to pay for it,” he said.

The adoption trend continues

The adoption of cryptocurrencies has reached a booming field in recent days with Argentine banks yielding to public pressure to offer cryptocurrencies to customers. Banco Galicia, Argentina’s largest bank in terms of market value, now allows customers to buy BTC, ETH, Ripple (XRP) and USD Coin (USDC) after a bank survey revealed that 60% of customers favored movement.

In the Far East, the incoming president of South Korea is making every effort to encourage the adoption of cryptocurrencies in his country by reversing the ban on initial currency offerings (ICOs). According to reports, Yoon Suk-yeol, the president-elect also plans to classify digital assets as securities and non-securities in a two-way regulatory framework.

The Central African Republic (CAR) became the last country after El Salvador to adopt Bitcoin as a legal tender, but academia and opposition parties questioned the validity of the decision. According to the International Monetary Fund (IMF), “the adoption of Bitcoin as a legal tender in RCA poses significant legal, transparency and economic policy challenges,” but the Fund will help the country’s authorities address the concerns associated with the decision.

IMF Central African Republic

The race for the American cryptographic center is in full swing

California has joined the heated race to become the cryptographic capital of the United States with the introduction of a framework for adopting digital assets. Governor Gavin Newsom’s executive order gives the green light for authorities to begin drafting the regulatory framework that is considered to be the most comprehensive in the United States.

On the other hand, Colorado passed a bill to explore how security tokens can be implemented in fundraising for the “best interest of the state.” Jared Polis, the state governor, had already shaken the pot by announcing that Colorado was almost close to accepting cryptocurrencies as a means to pay taxes at the ETHDenver Conference.

Sacramento, California

Bittersweet week for NFTs

Coinbase’s non-fungible token (NFT) market got off to a mediocre start after recording less than 110 transactions worth $ 60,000. The figure contrasts with the 3.7 million people on the waiting list in February, and experts say OpenSea is the “leader for quite some time.”

Far from the bitter news of Coinbase’s NFT market, CryptoPunks, a pioneering NFT collectible, has reached $ 2 billion in all-time sales. The new metric places CryptoPunks above the Bored Ape Yacht Club, NBA Top Shot, and brings it one step closer to Axie Infinity.

Gary Vaynerchuk, the founder of VaynerMedia, has revealed that he owns 62 CryptoPunks worth more than $ 10 million. “You probably don’t have an investment in which you have more confidence than CryptoPunks,” he said in a podcast with Logan Paul.

The Federal Reserve is worrying about cryptocurrency investments

The US Federal Reserve (Fed) has announced an increase in interest rates by half a percentage point to 0.75%, making it the highest increase since 2000. Anthony Pompliano, a Bitcoin enthusiast, referred to recent rises as proof that the Fed has lost control. of the economy as it fights very high inflation and the resurgence of a second recession since 2020.

US Federal Reserve stocks are not alone as there is a trend among central banks in G7 countries to raise rates and reduce their balance sheets. A Bloomberg Economics report suggested that central banks could reduce their balance sheets by as much as $ 410 billion, causing markets to panic.

Despite the turmoil in the markets, the Luna Foundation Guard bought 37,863 BTC to raise its total BTC stake to 80,394 BTC. The last purchase was made with the help of Three Arrows Capital and Genesis Trading, but it was not enough to save Bitcoin from trading below $ 35,000.

Inflation Federal Reserve interest rates

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