Mexico’s Central Bank to Launch its Digital Currency in Next 3 years to “Advance Financial Inclusion”

Mexico’s Central Bank to Launch its Digital Currency in Next 3 Years to “Advance Financial Inclusion,” says the Government

The central bank of Mexico will launch its own digital currency by 2024, announced the Mexican government on social media.

“Banxico reports that it will have its own digital currency in circulation by 2024,” the Mexican government wrote on its official Twitter account this week.

In its post, the central bank said it considers these new technologies and the latest payment infrastructure “very important” and “valuable options to advance financial inclusion in the country.”

Banxico, the monetary authority of Mexico, however, hasn’t confirmed the development itself. The central bank is legally independent of Mexico’s government. An anonymous senior bank official also told Reuters that the announcement was “not official.”

A couple of weeks back, Banxico said in a report that it is actually studying and working on the development of a platform for the implementation of a digital currency but gave no details on timing.

This CBDC project aims to improve financial inclusion by opening accounts for the registration of a digital currency for both banked and unbanked people, the report added.

This week, the central bank of India also said that they need to adopt a basic model for its CBDC.

“Given its dynamic impact on macroeconomic policymaking, it is necessary to adopt basic models initially and test comprehensively so that they have minimal impact on monetary policy and the banking system,” the Reserve Bank of India (RBI) said in a report. “India’s progress in payment systems will provide a useful backbone to make a state-of-the-art CBDC available to its citizens and financial institutions,” it added.

The apex bank further said in its report ‘Trend and Progress of Banking in India 2020-21’ that the CBDC can offer myriad benefits such as liquidity, scalability, acceptance, faster settlement, and ease of transactions with anonymity to its users.

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Author: AnTy

Russian Legislators Advance the Crypto Tax Bill Recognizing Digital Assets as Property

Russian Legislators Advance the Crypto Tax Bill Recognizing Digital Assets as Property

  • Russia’s lower legislation house, State Duma, advanced the crypto tax bill, which aims to recognize digital assets as property for taxation purposes.

The world’s largest country is moving closer to setting up crypto taxation laws after the lower representative house. State Duma passed the first reading on the draft bill affecting digital assets. The crypto tax bill, introduced to parliament by the government, aims to recognize cryptocurrency assets like Bitcoin and Ethereum as property to apply the Tax Code, the report reads.

According to Prime Minister Mikhail Mishustin, these new laws will enable crypto owners to have a legal standpoint in court and defend themselves as property.

Additionally, the new amendments to the Tax laws state that income from cryptocurrency transfers and transactions will be liable to property or income tax payments. Citizens and organizations will also have to declare any transfers above 600,000 rubles (~$8,200) per year. However, digital asset transactions will not be liable to VAT and depreciation.

According to the report, non-payment or incomplete payment of the tax on digital assets will attract a penalty of 40% of the required amount. Lack of reporting, untimely submission, or submission of a declaration with inaccurate information will attract a 10% fine on the amount required by the government.

In the second reading, the State Duma plans to release a comprehensive report clarifying which digital asset transactions are tax-exempt, who submits the reports to the tax office, and how to inform authorities on disposing of the assets.

The newly amended bill does not change President Putin’s signed law requiring Russian state officials to disclose their digital asset holdings and maintains digital assets are not a legal means of payment.

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Author: Lujan Odera

USAF Allocates $1.5M to SIMBA Chain for Blockchain Supply Chain Integration

The U.S Department of Defense has allocated $1.5 million towards SIMBA Chain, a blockchain-oriented firm, to advance research in supply chain logistics. This blockchain-as-a-service (BaaS) startup has developed close ties with the U.S Air Force, hence the opportunity to embark on research and development in blockchain logistics for security forces.

According to an announcement on June 15, SIMBA Chain has since begun the second phase of its Small Business Innovation Research (SBIR) in collaboration with the U.S Air Force. This project aims to provide a value proposition based on blockchain tech to scale the efficiency of military supply chains.

Blockchain Supply Chain for the USAF

Joel Neidig, the CEO of SIMBA Chain, said that they would set up a Hyperledger Fabric node at the Tinker Air Force Base in Oklahoma. Notably, this is the U.S Air Force supply chain logistics hub.

Neidig went on to highlight that the initial focus will be on risk management within the $62 billion USAF procurement pool. The aim will be the identification of what, who, and where risk factors to single out a potential break down areas in the supply chain.

SIMBA Chain has partnered with Boeing to roll out this initiative and leverage stats from ‘real data’. However, Neidig did not specify which Boeing parts will be tracked in this second phase of the SBIR project. Other than supply chain logistics, the SIMBA Chain CEO was keen to note that blockchain could also streamline information sharing in the military:

“Within the military, they’re also thinking about how people are sharing data, where it is coming from, where else it’s connected to. They think out all the things that can go wrong, and that’s where blockchain can come in.”

SIMBA Chain History in Blockchain

The BaaS is no newcomer to the game, having raised seed funding from the Department of Defense back in 2017. At the time, they were tasked with creating a crypto chat app for Advanced Research Projects within the military. The firm would later secure more SBIR contracts with the Air Force and Navy.

Following these developments, SIMBA Chain has positioned itself as the advocate for blockchain in military ecosystems. Interestingly, the company’s tech has, in turn, received support from the Air Force according to sentiments by the director of Special Programs, Strategy, and Policy in USAF, Jeffrey Slayton:

“Emerging technologies like SIMBA Chain’s blockchain platform have the potential to achieve the reliable exchange of information over an unreliable network where not all participants can be trusted, and in so doing, continue to advance the technological supremacy of America’s air, space and cyber forces.”

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Author: Edwin Munyui